Manaksia Aluminium eyes ₹40-cr capex

Abhishek Law Kolkata | Updated on January 10, 2018

Aims for a capacity of 21,000 tonnes per annum at its Haldia plant

Manaksia Aluminium Company, part of the Kolkata-based Manaksia Group, is planning a capex of ₹40 crore for a 15-20 per cent capacity addition over the next one year.

Manaksia Aluminium is mostly into value-added end products such as colour-coated roofing and panelling that are used in automobiles, air conditioning, warehousing and vans, among others.

The company, listed on NSE and BSE, was formed after thede-merger of Manaksia Ltd.

According to Sunil Agrawal, Managing Director, the company is eyeing a total capacity of 21,000 tonnes per annum of aluminium at its Haldia unit in West Bengal against the existing capacity of 18,000 tonnes per annum.

The Haldia unit is already operating at 80-85 per cent capacity.

“We will look at both internal accruals and loans to fund the capex. Capacity addition would come mostly from debottlenecking at Haldia,” he told BusinessLine on the sidelines of a logistics conclave, organised by the Bengal Chamber of Commerce and Industry.

The company has a second unit at Bankura in West Bengal that manufactures aluminium alloys, used mostly for making auto components.

Better margins

After de-bottlenecking at the Haldia unit, the company would also look at opting for higher margin and value-added products such as special alloys that find usage in marine applications, shipping boats and refrigeration.

Compared to the regular offerings that have a margin of 7-8 per cent, the new offerings would have margins between 12 and 15 per cent.

Accordingly, Agrawal is hopeful of increased demand and rising prices, to help Manaksia Aluminium post a healthy profit and a 15 per cent growth in top-line this fiscal to ₹300 crore.

The company had reported a loss of ₹4.61 crore in FY17. However, in the first six months of this fiscal (April-September period), it posted a net profit of ₹1.56 crore and a turnover of ₹130 crore

Published on January 10, 2018

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor

You May Also Like