Kolkata-based PVC pipes and transmission towers maker Skipper Ltd plans to increase its PVC pipes-making capacity by four times during this fiscal by setting up four new facilities across the country.

The BSE-listed Skipper Ltd, which has a PVC pipes facility in Kolkata, will start commercial production at its new facility in Ahmedabad on Wednesday.

"We have 10,000 tonnes per annum (TPA) of manufacturing capacity at Kolkata currently. The Ahmedabad facility has an additional 10,000 TPA. During this year, we are planning to open three more facilities with a combined capacity of 20,000 TPA. This will increase our total capacity from 10,000 TPA currently to 40,000 TPA," said Devesh Bansal, Director, Skipper Ltd, addressing media here.

The company plans to invest Rs 50 crore on expansion this year, while it has already invested about Rs 50 crore on the Ahmedabad facility. Setting up manufacturing facilities outside Bengal is a strategic decision to reduce its freight cost to cater to other markets in the country.

The other three facilities may take shape at Guwahati in Assam, Ghaziabad in Uttar Pradesh, and Sri City in Andhra Pradesh.

Bansal further added that the company was focusing more on the high-growth PVC segment, which was growing at 7-8 per cent annually. "Our plan is to increase our PVC pipe-making facility to 100,000 TPA over 2-3 years," he said.

For Skipper, the PVC business accounted for 10-15 per cent of the company's total turnover of around Rs 1,041 crore for the year 2013-14. The company is yet to announce its financial results for fiscal 2014-15.

According to market estimates, the country's PVC pipes market is estimated at 1.8 million tonnes per annum, or roughly Rs 15,000 crore, which is estimated to reach Rs 20,000 crore by 2019. Of the total PVC pipes market, the agriculture sector has 60 per cent share, while the plumbing segment has 40 per cent. The growth in the plumbing segment is seen faster than agriculture.

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