BSE-listed Kisan Mouldings today said it has chalked out an ambitious growth plan of doubling turnover to Rs 1,000 crore in the next three years.
"The company is poised to gain 100 per cent growth within the next 3 years and forecast a top line turnover of Rs 1,000 crore by 2018 from Rs 536 crore in FY14," Kisan Mouldings CEO Abhaya Shankar said in a statement here.
"In the mid-term and long term we will win significant market share in various segments of the polymer industry and we are confident of meeting our business forecast with our transformation plans," he said.
The company's growth plan includes setting up a project to fully automate its extrusion division at Tarapur at a total capital outlay of over Rs 6 crore.
Polymer pipe industry player Kisan Mouldings proposed project is likely to be completed by the end of 2015. This initiative coupled measures like smart utilisation of plant capacity, new product introductions, and market and distribution strategy will help Kisan attain higher productivity, improved quality and lower costs, Shankar said.
The total polymer pipe industry in India is currently around Rs 18,000 crore, estimated to be growing at 8-10 percent per annum.
Certain segments within the polymer pipe industry have shown a higher growth rate in the past, like CPVC which has demonstrated a growth rate of around 15 percent per annum.
Shankar said the polymer pipe industry in India faced a serious challenge in the last financial year and choked with uncertain demand, steep and unexpected fall in the price of plastic resin, leading to high and undervalued inventories.
These factors put together created severe pressures on working capital and the financials of the company.
Kisan Mouldings Chairman Vijay Aggarwal said, the company is considering the shifting of machineries from two of its North Indian plants to its plants in Maharashtra, after obtaining the requisite permissions and approvals, which should happen by the second quarter of the current financial year.
Aggarwal said that this would help in cost reduction as well as launch a large range of products from our existing plants, thereby improving service levels to our customers.
