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Buoyed by the Central government's push for power transmission projects in the country, power T&D player, Skipper Limited has laid out long-term expansion plans in its power transmission tower making facility in Kolkata.
Devesh Bansal, director, Skipper Limited on Friday informed that the company will add about 25,000 tonnes per annum of capacity every year from this year on wards. "We are adding 25,000 tonnes of capacity this year. And we plan to continue our expansion every year. This will be brownfield expansion and require very less capex," Bansal told BusinessLine.
The company currently has 175,000 tonnes of tower making capacity. The power T&D business has 80 per cent share in the company's overall Rs 1,450 crore revenues for fiscal 2014-15.
He maintained that the issues of evacuation and coal allocation are being addressed by the government. In May this year, the Union Minister of State for coal, power and renewable energy, Piyush Goyal, had announced to award power transmission projects with Rs 1 lakh crore in the coming six months to boost power network.
"There is an increased focus on infrastructure. So, we expect our turnover to continue growing at 25 per cent annually following the government focus on infrastructure development," Bansal said.
The company has 20 per cent business coming from PVC pipes segment and infrastructure projects. While it plans to increase focus on CPVC segment, it has entered into a partnership with, Japanese CPVC compounds maker, Sekisui - a part of the $ 9 b Sekisui Chemicals group.
The company has total PVC manufacturing capacity of 24,000 tonnes per annum, located at Kolkata (12,000 TPA) and Ahmedabad (12,000 TPA). "We are also planning to increase PVC manufacturing capacity by 40,000 TPA with new facilities at Secunderabad, Guwahati and Hyderabad to be commissioned by this fiscal," he added.
The Indian PVC pipes and fittings market is pegged to be at Rs 20,000 crore by fiscal 2019, growing by 7 to 8 per cent per annum.
The PVC business of Skipper has been experiencing 100 per cent growth and having captured a significant share in the Eastern market.
Skipper shares ended at Rs 150.10 on the BSE on Friday, marginally down from previous close.
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