Supreme Inds' Cuttack unit commences commercial production

The MD of the plastic products manufacturer stated that the new unit would provide the firm the requisite scale and capacity to help in meeting the growing demand of company's products.

Supreme Industries said that the company's 28th unit set up at Cuttack, Odisha, has commenced commercial production.

The aforementioned unit is spread over an area of about 30 acres and has gone into commercial production with initial capacity of 16,800 MT per annum with a capex of about Rs 90 crore. The same would reach to 43,200 MT per annum once all the machinery ordered is delivered and installed, likely by first quarter 23-24 taking the total capex at the unit to about Rs 125 crore.

The unit would be manufacturing various plastic piping products viz. UPVC pipes, HDPE pipes, tanks, plain and braided hoses, etc.

The company expects to penetrate plastic piping products market in Eastern India, where it enjoys good market share backed by well-estabilshed quality and brand.

M. P. Taparia, MD, Supreme Industries, said: With the Cuttack unit into operation and other Greenfield units at Guwahati & Erode already became operational during the course of the current year along with brownfield expansions at other existing locations, installed capacity of plastic piping systems products shall reach to 6,15,000 MTPA by March, 2023.

The commissioning of the new unit takes us closer to our objective to aggressively grow plastic piping system business at pan India level.

Supreme Industries is India's leading processor of plastic. The company has a diverse product portfolio, comprising piping systems, cross laminated films and products, protective packaging products, industrial molded components, molded furniture, storage and material handling products, performance packaging films and composite, and liquefied petroleum gas cylinders. It has 25 facilities across India.

The scrip fell 3% to currently trade at Rs 2662 on the BSE.

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