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R. Ravikumar

To commission new facility in Uttaranchal soon

Chennai , Jan. 12

Everest Industries Ltd, once a subsidiary of ACC, has recently expanded its product ambit to offer a range of multipurpose cement boards, meant primarily for internal applications such as false ceilings, dry wall partitions and internal linings in residential, commercial and industrial sectors. This follows its decision to move away from being just a building product company to a building solutions company.

According to Mr Manish Sanghi, Executive Director, Everest Industries, while its E-Board range can find applications such as false ceilings, panelling, doors, backliners (for cupboards and cabinets), wall cladding, flooring and pre-fabricated structures, Rapicon suits walling solutions for internal walls, external walls and prefab housing.

Easy-assembly tiles

Another product, Acostyle, is a mineral fibre tile which combines styling and acoustic properties to enable better interiors for commercial establishments and offices. These tiles are coated with vinyl latex paint resulting in light reflection of over 85 per cent, making interiors appear brighter.

As these ready-to-use tiles come with a universally-accepted tongue-and-groove joint system for easy assembly, it can be built in just a few hours unlike brick and mortar walls, says Mr Sanghi. "This will also increase the carpet area by up to 5 per cent."

Everest Industries currently produces four-lakh tonnes of roofing sheets and 75,000 tonnes of boards a year and has manufacturing facilities in Kymore (Madhya Pradesh), Kolkata (West Bengal), Coimbatore (Tamil Nadu) and Nashik (Maharashtra).

Technology transfer

In its Coimbatore facility, the company, in technical collaboration with Chennai-based Saint Gobain, manufactures Everest Hi-Tech, an impact resistance non-asbestos corrugated roofing system. "Apart from the technology transfer, as per the contract, Saint Gobain would supply a key raw material only to Everest," he said.

Elaborating on the company's growth plans, Mr Sanghi said, "We have commenced a major expansion programme aimed at increasing our production capacity to meet the demand from the rapidly expanding construction sector."

According to him, the company is scheduled to commission a greenfield facility set up at an investment of Rs 70 crore at Bhagwanpur in Uttaranchal soon. The new facility would manufacture 50,000 tonnes of fibre boards and one lakh tonnes of roofing products per annum to cater to the northern markets.

Focus on roofs

Since roofing products are the company's mainstay, and 70 per cent of the company's sales come from rural areas, its focus is more on the rural markets.

Everest Industries is currently organising road shows, in the villages of Tamil Nadu, for roofing sheets. The company is now targeting Coimbatore, Erode, Salem, Namakal, and Karur through these campaigns.

Madison Communications is handling the company's advertising account and the company earmarked Rs 7 crore for its marketing activities for the current fiscal.

Everest Industries recorded a growth of over 11 per cent in turnover with Rs 254 crore in the last fiscal, up from Rs 227 crore the previous year.

"We are scheduled to grow at 20 per cent in the current financial year, and on track to increasing our turnover to Rs 300 crore this fiscal and to Rs 500 crore by 2008-09," says Mr Sanghi.

Everest Industries is listed on BSE and NSE. On Friday, the stock closed at Rs 115.85 on the NSE, almost unchanged from the previous close.

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