Supreme Industries plans Rs 350cr capex in FY21

    Kolkata, Aug 6 (PTI) 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 BSM
BDC BDC

(This story has not been edited by THE WEEK and is auto-generated from PTI)