The Hindu Business Line : Manjushree Extrusions plans to expand capacity

Bangalore May 25 To tap the huge demand potential from the retail boom giving an impetus to FMCG industry, Manjushree Extrusions plans to expand its plastic packaging capacity by investing Rs 54 crore.

The company will be spending bulk of its new investments to build higher capacity of `pre-form' packaging materials preferred by customers to reduce cost of transportation of finished bottles or packages and avert in-transit damage.

Manjushree will be increasing its annual capacity to 14,240 tonnes from 4,000 tonnes.

Pre-form material

With the US and European companies looking to India for sourcing low cost production, Manjushree plans to devote 75 per cent of its additional capacity to `pre-form' material to cash in on the increasing demand from international customers.

This will also boost the company's exports to about 40 per cent from the current five per cent.

Mr Vimal Kedia, Managing Director, Manjushree Extrusions Ltd, told Business Line that of the proposed Rs 54-crore investment, Manjushree will be raising Rs 36 crore through rights-cum follow-on public offer, while a debt of Rs 18 crore has already been tied up from State Bank of India.

Turnover

With the expansion, the company aims to increase its turnover to Rs 180 crore after the full-year operation during the financial year 2008-09, post-equity dilution in September.

Its turnover during the financial year 2007 was Rs 80 crore with a net profit of Rs 2.83 crore.

More Stories on : Outlook | Packaging | Plastics

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Tata Tea makes $523-m profit with Glaceau sale

Suzlon acquires REpower for € 1.35-b as Areva backs out

`REpower takeover won't affect Suzlon'

What next for Suzlon?

Suzlon: Winds blow in favour

For Tulsi Tanti, it's 17th time lucky

ETA Star ties up with TN for township project

Indian oil cos will have to bid anew for Iraqi blocks

United Biotech ties up with Italian co

NTPC inks energy pact with Nigeria

Manjushree Extrusions plans to expand capacity

Paradip-Haldia crude pipeline to be ready soon

Ramky group turnover touches Rs 1,000 cr