Salguti Plastics Ltd was incorporated as a private limited company in Oct.'84 and was converted into a public limited company in Aug.'92. The company set up a HDPE/PP woven sack plant with a capacity of 308 tpa and commenced commercial production in Apr.'87.
The object of the present issue is to part finance the new unit of the company so as to create an additional capacity of 1265 tpa. The company has initially planned to issue equity shares of Rs 10.00 lac to part finance the expansion in Aug.' 93 and has received SEBI clearance for the same. However, as the company succeeded in securing additional term loan of Rs 50.20 lakhs and additional DPG facility of Rs 40 lakhs from Andhra Pradesh State Finance Corporation and Andhra Bank respectively, it went ahead with the expansion programme and completed the first phase of expansion by Dec.'93 with the promoters contribution and the additional debt raised from the institutions. In 1995-96, it proposed to increase the capacity by 1288 mts at an estimated amount of Rs 4.89 crores and commercial production of the above project is expected to envisaged from Oct.'97.