The Hindu Business Line : Srinivas Fine Arts diversifies into high-end packaging

Sivakasi June 19 Srinivas Fine Arts Pvt Ltd, a leading manufacturer and exporter of `Nightingale' brand of premium stationery products, is diversifying into making high-end packaging materials to exploit the buoyancy in manufacturing sector.

According to Mr C. Rajesh, Managing Director, Srinivas Fine Arts, the company sees packaging as a significant opportunity for growth.

The developments in the manufacturing sector and the expanding range of items made domestically, offer a wide scope for packaging material. There is a shortage of high quality packaging material - high quality in terms of utility and aesthetics. Though manufacturing is moving into India, manufacturers here depend on imports for high-grade packaging, he said.

Printing facility

The Rs 75-crore Srinivas Fine Arts has one of the largest printing facilities in Asia, Mr Rajesh said, including a six-colour Heidelberg printing machine that cost Rs 12 crore.

It has also invested about Rs 5 crore in a Swiss-made dye cutter and a folder-gluer. These facilities mean that the company can make packaging with UV and online coating, print on metallised and laminated sheets.

The company can cater to the high quality packaging demand by exporters in garments, electronics and any other manufactured goods.

Growing big

According to Mr Rajesh, `packaging' is on a growth path globally. In India, it is growing at about 40 per cent and is expected to sustain at that levels in the coming years.

For Srinivas Fine Arts, the diversification is expected to yield an additional Rs 20 crore within the next three years. Beyond the third year, it would contribute Rs 25 crore to the top-line of the company at the same level of investments.

Srinivas Fine Arts is part of a Rs 200-crore group which has interests in paper trading and spinning. The paper trading business generates over Rs 100 crore, and spinning mills Rs 30 crore. A range of trading activities fetch in another Rs 25 crore.

The company is also in the process of setting up an industrial safety garments manufacturing unit.

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