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| Kemrock plans upto Rs 1800 cr investment in 4-5 years |
| BS Reporter / Mumbai/ Ahmedabad May 10, 2010, 00:26 IST |
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Company inaugurates India's first carbon fibre facility at Vadodara
Vadodara headquartered Kemrock Industries and Exports Ltd, one of the leading manufacturers of reinforced polymer (FRP) composites in India, plans to pump in $ 300-400 million (approximately Rs 1350 crore to Rs 1800 crore) over the period of next four to five years for company's new initiatives.
The company intends make this investment for the new initiatives of Kemrock and its subsidiary firms. "Around Rs 300 to Rs 400 crore will be infused this year in its joint venture with German company Saertex," said Kalpesh Patel, chairman and managing director, Kemrock at company's plant in Vadodara. The proposed fund would be raised by way of debt and equity.
The company has forayed into carbon fibre manufacturing by commissioning India's first carbon fibre production facility in Vadodara, which was iaugurared today by Dr APJ Abdul Kalam, former president of India. The plant, set up with technology know-how from CSIR-National Aerospace Laboratory, Bangalore, would serve the defence, aerospace and infrastructure sectors to lead the nation towards self sufficiency in carbon fibre technology.
Kemrock's carbon fibre plant has a production capacity of 400 tonnes per annum (TPA) and will produce aerospace grade carbon fibre and prepregs.The company has infused Rs 200 crore for the project.
"We plan to increase the capacity to 800 TPA in the second phase. The overall expenditure for 800 TPA capacity would be in the range of Rs 250 crore," he added. Carbon fibre finds critical application in aerospace industry, auto sector, wind turbines and infrastructure sectors. Japan is the global leader in carbon fibre market with 70 per cent marke share and the rest is shared by Europe and America.
Kemrock's other products include thermo setting resins and composites products such as windmill blade, rail coach interiors and exteriors, cable management systems, pultruded profiles, grating, piping systems and. The company hopes that its composites busines will contribute 25 per cent of its sales. The global composites industry is estimated at about USD 85 billion. North America and Europe accounts for about three quarters of the composite industry's total market value.
"We are also in talks with some of the foreign companies for entering into joint venture so that company can export finished composites," Patel said, adding, "Kemrock is also open to make acqusitions for its inorganic growth."
The company currently has orders worth Rs 750 to 800 crore on hand. "We hope to achieve a topline of Rs 800 crore by the end of current fiscal," he said.
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