The Hindu Business Line : Bengal Waterproofs plans foray into soft luggage — To invest Rs 35 cr, may go in for IPO by '07

The company, headquartered in Kolkata, has been selling rainwear and other related products for the last 85 years but has only now decided to enter new product areas that hold greater potential.

On the anvil is an investment of up to Rs 35 crore over the next two years in plant and machinery and plans are afoot to tap the capital markets by going in for an Initial Public Offer by 2007.

"We have the strongest brand name as far as rainwear is concerned. But this is a seasonal business and we needed to diversify into areas that are high growth. BWL is targeting over 50 per cent growth in sales to touch Rs 85 crore over the next two years after we diversify into businesses like inflatable astrodomes and soft luggage," Executive Director Mr Amit Mukherjee told Business Line.

He cited the example of rubberised astrodomes, saying this product has been developed particularly for underprivileged children, who have no access to a planetarium. These inflatable astrodomes can be taken from one village to another and inflated for these children to experience the night sky.

Then, the company is also getting into luggage that is coated with either rubber or PVC. Mr Mukherjee said the company is also getting into manufacture of rollers coated with specialised rubber for use by the steel industry.

Besides rubber-coated rainwear, BWL already manufactures other related products including gumboots that are used during water logging and snow ankle boots. The company has a manufacturing facility in Kolkata. Its wholly-owned subsidiary, Bihar Rubber Company Ltd, manufactures occupational and safety footwear at Ranchi, Bihar.

Asked about the company's advertising budget for the new products, Mr Mukherjee said the company does not see advertising as a major sales growth driver, instead relying on point-of-purchase material to promote its products.

However, in a bid to expand its dealer network, BWL will enhance its reach to 6,000 dealers by the next fiscal. Asked about the proposed investment in expansion over the next two years, Mr Mukherjee said the company was looking at a combination of debt and internal accruals for investing up to Rs 35 crore.

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