The Hindu Business Line : Hydro S&S to supply plastic compounds to Nano

Plans ahead
The Singur plant will start with a capacity of 4,000 tonnes.
The company will be spending Rs 35 crore on capex over the three years beginning April 2007.
This includes setting up of a dedicated R&D facility.

T. Murrali

M. Ramesh

Chennai, Feb. 21

Hydro S&S Industries Ltd (HSSIL), part of the Chennai-based WS Group, is setting up a plant at Singur to supply plastic compounds to vendors of Tata Nano. The company’s products have been approved by Tata Motors for the Nano car.

The Rs 12-crore plant will be the company’s fourth, counting in another one that is coming up at Pune at a similar investment.

The polypropylene-based compounds that Hydro S&S produces are bought by plastic moulders who make products that go into cars, such as bumpers and door trims. Hydro S&S has been supplying these plastic compounds to practically all the car OEMs in India.

The Singur plant will start with a capacity of 4,000 tonnes and ramp up to double the number in a few years, the Managing Director of Hydro S &S, Mr Narayan Sethuramon, told Business Line today.

Hydro S&S has two plants — in Pudukottai and Puducherry. Between them they have a capacity to produce 15,000 tonnes of compounds. These plants are also being expanded at an outlay of around Rs 10 crore.

Capex plans

In all, the company will be spending Rs 35 crore on capex over the three years beginning April 2007. The expansion project includes the setting up a dedicated R&D facility to support all its manufacturing plants.

The company closed 2006-07 with a turnover of Rs 100 crore and a net profit of Rs 2.8 crore. In the first nine months of the current year, the turnover was Rs 84 crore and net profit Rs 4.5 crore.

Mr Sethuramon said that the company expects turnover to grow 40 per cent in the next financial year. Net profit would double from the current year’s level, he said.

The company has a 25 per cent share of the market and expects to raise this share to rise to 35 per cent in three years. Hydro S&S expects that in three years it would be a Rs 250-crore company.

More Stories on : New Projects | Automobile Components | Tata Motors Ltd

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