The Hindu Business Line : Nilkamal to shed its image as pure-play plastic co

Coimbatore, March 14 Nilkamal Ltd, a player in the plastic-moulded furniture industry, plans to shed its image as a mere plastic products company and expects to ramp up its turnover in the next three years with equal contribution from its plastics division, material handling systems and home solutions stores.

The company’s injection-moulded and rotational-moulded plastic unit at Jammu, established at an investment of about Rs 35 crore, commenced operations last month. Mr Manish V. Parekh, Director, Nilkamal Ltd, said that it does not have any immediate plans to expand its manufacturing presence beyond Sri Lanka and Bangladesh where it has production facilities.

Speaking to Business Line here on Friday, after the inauguration of the ‘@home’ home solutions store in the upmarket R. S. Puram area of the city, he said the moulded plastics, material handling systems and home solutions were the three key businesses of Nilkamal Ltd.

This is the 13th store of the company. Nilkamal aims to have 50 such company-owned stores by 2010-11 with each store averaging 20,000-30,000 sq. ft in size and an estimated sales turnover from this segment to exceed Rs 600 crore.

He aims to close the current year with a turnover of about Rs 850 crore as against an approximate Rs 500 crore recorded in the previous year.

The two figures are not strictly comparable as the current year turnover would include the results of two companies merged with Nilkamal.

During this year, he expects the contribution from the moulded-plastic division to be about Rs 400 crore and from the materials-handling division nearly Rs 330 crore and Rs 65 crore from ‘@home’ stores.

The company has 37 per cent market share in the moulded-furniture business. In the material handling systems segment, the company aims to become an one-stop solution.

Acquisition

Mr Parekh said that the company had acquired the businesses of a competitor Prince Plastics and its assets for Rs 25 crore about six months ago and was also looking aggressively at the material-handling segments which presented a huge opportunity and has tied up with a Belgian company for textile partitions and with a German company for manufacture of heavy duty steel racks.

During the next year, he expects the turnover to increase to Rs 1,100 crore. Of this, about Rs 500 crore would be from moulded furniture sales, Rs 400 crore from material handling and other income and Rs 200 crore from ‘@home’ stores.

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