Ahmedabad-based Plastene India Ltd is looking to commission its upcoming block bottom valve bags plant at Nani Chirai in Kutch by April 2013. The company will invest Rs 25 crore for its 5000 tonnes per annum plant at Nani Chirai in Kutch district.
According to company officials, the new packaging product will be mainly supplied to the industries such as cement and food grains in the domestic market. "Block bottom valve bags are being imported in a large volumes from neighbouring countries like Bangladesh. But once our commercial production starts in April 2013, this can reduce the dependence on imported block bottom valve bags for industries like cement and food grains," said Prakash Parekh, MD of the company.
Plastene has so far invested about Rs 6.7 crore through internal accruals for the project, while the remaining funding requirement will be met through the proceeds of the company's upcoming initial public offering (IPO). The Rs 75-crore public issue of the company is slated to open on May 9, 2012 in the price band of Rs 81 to Rs 84 per equity share of the face value of Rs 10 each.
