Diversified firm Skipper is eyeing Rs 1,000 crore revenue from its PVC pipes business in the next two years as it looks to clock 20 per cent growth in consolidated PAT year-on-year.
The Kolkata-based firm, which manufactures PVC pipes and fittings for plumbing and agriculture sector, is betting big on government initiatives like Swachh Bharat Abhiyan, Smart Cities and other infrastructure projects.
"Last year, PVC pipes business clocked over Rs 160 crore, which was nearly 10 per cent to the total revenues. But going forward, we hope this number to go up significantly and garner nearly 25 per cent of the share in the revenues.
"We are eyeing Rs 1,000 crore from the PVC business alone in the next two years," the company's Director and CEO for Polymer Division Siddharth Bansal told PTI.
He said there has been a surge in demand for PVC pipes in the last few years mainly on the back of ongoing development in sectors like real estate, infrastructure and agriculture.
"Also, the Swachh Bharat Abhiyan has driven the growth in demand for plastic pipes and fittings as well as water tanks," Bansal said.
The company has a manufacturing capacity of around 45,000 tonnes per annum of PVC products including fittings at its facilities in Kolkata, Hyderabad, Ahmedabad, Sikandarabad and Guwahati. It expects to increase it to 1 lakh tonnes per annum in the next two years.
"We are in the process of setting up another facility in Guwahati for the pipes business and we hope it becomes operational soon. We want to increase our total PVC pipes and fittings capacity to 1 lakh tonnes per annum in the next two years," he said.
Skipper Pipes has tied up with Sekisui Chemicals Company of Japan to make its CPVC pipes and fittings from their CPVC compound Durastream.
The company is also setting up a plant in Kolkata to manufacture water tanks, Bansal said.
"We are setting up a unit for manufacturing water tanks at our existing facility at Kolkata. As we move forward, we will add new products to this portfolio," Bansal added.
Skipper is mainly engaged in the business of manufacturing engineering products for the power transmission and distribution sector. It exports its products to over 20 countries across South America, Europe, Africa, the Middle East, Southeast Asia as well as Australia.
"We are seeing a good demand in the power business, especially in the T&D sector. We are getting orders from state utilities. Also, private players have now become active and are placing orders," the company's Director Sharan Bansal said.
He further said the company expects a topline growth of Rs 3,000-4,000 crore over the next two years.
"It is our strategy that we focus more on bottomline growth than the topline. We aim to have around 20 per cent growth in profit every year, even as we hope our revenues grow to Rs 3,000-4,000 crore in the next two years," Bansal added.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)