Finolex Industries Ltd, one of India’s leading manufacturers of PVC pipes & fittings, plans for incremental expansion and margin improvement to give a fillip to its business in 2016-17.
For the year ended March 31, 2016, Finolex posted a net profit of Rs 233.6 crore as compared to Rs 47.8 crore in 2014-15. The total income of the company decreased from Rs 2496.4 crore in 2014-15 to Rs 2492 crore in 2015-16.
With this year budget focusing on enhancing expenditure in priority areas of farm & rural sector, social sector, infrastructure, etc, the company expects the market for pipes and fittings to experience robust growth in the coming quarters. In addition the demand is also expected to be propelled by the government’s various policy initiatives, such as Housing for All, Smart Cities, Swachh Bharat Mission, etc, in the construction and non-agriculture sectors.
In order to cater to the growing demand for pipes and fittings, Finolex is expanding its scale of operations by increasing production capacity and distribution reach. The company plans to increase installed capacities of PVC pipes and fittings by 30,000 MT each year till FY18E with a capex of Rs 30 crore per annum. As on March 31, 2016, the company’s total capacity of pipe and fittings stands at 2,80,000 MT.
In addition, to improve margin, Finolex aims to increase sales of higher margin products and scale up share of fittings in sales mix. During 2015-16, fittings sales volume grew by 23 percent YoY. Recently, the company also commissioned warehouses at Indore (MP), Delhi (NCR) and Cuttack (Odisha) for ensuring faster delivery and enhancing distribution reach.
Finolex Industries Limited is the only PVC pipes and fittings company in the country with backward integration. Headquartered in Pune, the company operates through its manufacturing plants located in Pune, Ratnagiri in Maharashtra and Masar in Gujarat. Finolex is the first Indian U-PVC pipes manufacturer to be awarded the IS/ISO 9001:2008 certification.