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Supreme Industries plans Rs 350cr capex in FY21
Supreme Industries Ltd, a leading manufacturer of diversified plastic products, has planned a capital expenditure (capex) of Rs 350 crore this year for capacity expansion of its plants, an official said on Thursday.
Kolkata: Supreme Industries Ltd, a leading manufacturer of diversified plastic products, has planned a capital expenditure (capex) of Rs 350 crore this year for capacity expansion of its plants, an official said on Thursday.
The company had invested Rs 240 crore in the last fiscal to enhance capacity of its various manufacturing facilities, he said.
"This year, we propose a capex of Rs 350 crore in various sites and projects," company's managing director M P Taparia said.
The company is committed to invest in its Kharagpur plant in West Bengal to set up a moulding shop to make pipe fittings and in two other facilities, another official said.
"The total investment in three facilities will be around Rs 180 crore," he added.
The manufacturer of plastic products has registered a de-growth in revenue during the April-June period of the 2020 -21 financial year.
It achieved a net product turnover of Rs 1,040 crore during the first quarter of the current year, as against a revenue of Rs 1,418 crore in the corresponding period of the previous year.
The plastic pipe business for agriculture sector saw a 15 per cent growth during the quarter, amid good crop and better credit flow in the rural market, the official said.
"But the slowdown in the housing sector in the urban market during the quarter has led to a de-growth in the piping business," he said.
The business of piping system accounted for 63 per cent of its annual revenue in the last fiscal.
The company has planned greenfield facilities in Odisha and Telangana to manufacture pipes and a plant in Gujarat to produce cross-laminated film.
"The company has negotiated purchase of 30-acre land to put up a plastic piping complex in Odisha. The drawings of various equipment to put up cross plastic film project are under preparation in Romania and Switzerland," the official said.
It expects to start commercial production of the cross-laminated films at the plant in the second half of 2021.
The consolidated net profit of the company stood at Rs 463 crore in 2019-20, as compared to Rs 446 crore in the previous fiscal.
(PTI)
