Finolex Inds In Rs 30-Crore Capex Plan

City-based Finolex Industries has embarked on a Rs 30-crore capital expenditure plan which includes enhancing its PVC manufacturing capacity by 10,000 tonne per annum (tpa) and energy-saving measures in the current year.

As part of this plan, a new unit will be put up at its existing Ratnagiri facility, which will increase Finolex Industries' total pipe-making capacity from the current 30,000 tpa to 40,000 tpa.

And will result in additional revenue earnings to the extent of Rs 60 crore per annum. Last year, Finolex Industries' revenues from its PVC pipes business stood at Rs 150 crore.

Meanwhile, two additional extruder lines at its existing Ratnagiri facility have commenced production, and another two will begin production in the first week of March.

 

The energy saving measures being undertaken by the company at its Ratnagiri and Pune facilities are also expected to result in savings on

energy consumption of up to Rs 4 crore per annum, a company official said.

Finolex Industries also has plans to introduce foam pipes for non-pressure applications like water transfer and to handle sewage water. These new non-pressure pipes will be manufactured at the company's Ratnagiri facility soon.

Recently, the company had launched the new `Ringfit' pipes in

the domestic market to replace some of the traditional piping

material.

Finolex Industries offers a wide range of PVC pipes and fittings in India covering diverse applications in agriculture, housing, telecommunication and for other segments of the industry.

The management is very bullish over the prospects of the company's products with buoyancy in the international markets and a marked upward trend in PVC prices.

Traditional exporting countries like US has begun to import PVC because of the strong domestic demand there, raising the company's hopes of a smart recovery in PVC prices in the domestic and international markets.

Besides, the recent decision of the government to slash sales tax on agricultural PVC pipes from 12 per cent to 8 per cent is further expected to boost the domestic demand for the PVC pipes.