Finolex Industries, a manufacturer of PVC pipes and fittings and PVC resin, has decided to focus on the former rather than on the resin business, which requires more capital for expansion.

The Pune-based company has also dropped an earlier plan to build a fourth pipes manufacturing plant in India. Instead, it plans to enhance capacity at its three existing plants in a phased manner. It has also set up its first warehouse in Odisha to help it expand into northern and eastern markets.

“We plan to set up 10 such warehouses across India in the next three years, and develop a template that can be replicated,” Prakash Chhabria, Executive Chairman, told BusinessLine .

To focus on pipes, the company is adding 30,000 tonnes a year capacity through brownfield expansion at its units at Pune, Ratnagiri and Masar, over the next three years. The incremental capex of ₹90 crore will take the company’s annual capacity to 3.2 lakh tonnes.

Interestingly, in 2008, the company had inked a deal worth ₹300 crore with international real estate player Tishman Speyer for the sale of 78 acres at its Chinchwad corporate office. That the deal did not go through may be a blessing in disguise. “We can double capacity sitting here,” Chhabria said.

The resin business currently accounts for around 40 per cent of Finolex’s top line (₹2,453 crore in FY-14). The company expects to grow at 15-20 per cent a year, with the percentage of revenue from pipes growing.

Asked whether Finolex was eyeing the inorganic path to growth, Chhabria said that the company was looking to buy out or partner firms with products or technology allied to the water business.

On the radar currently was technology for water filters and possibly even pumps, he added.

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