Flexituff International, one of the largest producers and exporter of flexible intermediate bulk container (FIBC), is close to signing an agreement with Australia-based Geofabrics Australasia for exclusive supply of its products in India.

Geotextile is a permeable fabric which, when used in association with soil, have the ability to separate, filter, reinforce, protect or drain. Geotextiles and related products have many applications and support civil engineering projects including roads, airfields, railroads, embankment, retaining structures, reservoirs, canals, dams, bank protection, coastal engineering and construction site silt fences.

Mr Saurabh Kalani, Managing Director, Flexituff International said the demand for geofabrics in India is set increase substantially with major investments being planned by the Government in infrastructure over next three to four years.

“The Australian company will supply high quality geofabrics which are hardly manufactured in India. Geofabrics Australasia will wind up its Indian subsidiary before signing the exclusive supply agreement by end of this month,” he added.

Technical partnership

Flexituff, which recently bagged a Rs 55-crore order from the Bihar Government for supply of geobags, will also enter into a technical tie-up with a Canadian company for manufacturing geotubes using oven fabrics.

“We expect our revenue from the geotextile business to see a quantum jump, to Rs 400 crore by 2013-14 from Rs 50 crore currently. Being a specialised product geotextiles command much better EBITDA margins,” he said.

The company, which is world's leading manufacturers of FIBC, plans to increase its FIBC capacity from 40,000 tonnes to 60,000 tonnes. The most sought-after packing material, FIBC finds use across sectors for packaging granulated material.

Flexituff recently raised Rs 104 crore through an initial public offer, which included fresh equity and offer for sale by Clearwater Capital Partners. Of the issue proceeds, Rs 18.9 crore will go towards increasing FIBC capacity and Rs 9 crore for setting up a unit to manufacture drippers for the drip irrigation industry. FIBC accounted for 90 per cent of revenues in FY-09, which dropped to 68 per cent by FY-11 on expansion of product mix.

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