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| Mysore to get can-end plant |
| Ravi Menon / Chennai/ Bangalore Sep 25, 2009, 00:20 IST |
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International Canends Pvt Ltd (ICEPL), a manufacturer of can-ends used in metal cans, is planning to invest about Rs 58 crore to set up a specialised can-end manufacturing unit in Mysore, according to informed sources.
Mysore-registered ICEPL plans to raise funding in the region of Rs 55 crore for the project either through the private equity route or via debt financing, with about Rs 3 crore in additional funding from the company’s promoters.
ICEPL has completed land acquisition for the can-end manufacturing plant, which will be a fully export-oriented unit with an annual capacity of 745 million can-ends, sources said.
“This is the first full-fledged can-end production facility being started by us out of India. The can-end product manufactured at Mysore will be an import substitute. ICEPL has been talking to potential sources of funding and expects to finalise something soon,” sources said.
Ohio, US-based engineering company Canning Solutions, will supply the technology and equipment for the new plant. ICEPL is also said to have secured a commitment from an American buyer who intends to buy 50 per cent of the plant’s production.
The booming food sector in India will open new opportunities in the packaging sector for metal can manufacturers, the sources added.
“Most of the food packaging currently goes in metal cans as the shelf life is higher than other categories of packaging. India has many can making facilities but not a single facility to make easy open-ends for the cans because the technology was hitherto unavailable,” they said.
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