Ahmedabad-based pipes maker, Astral Poly Technik Ltd (APTL) is in the process to expand its manufacturing capacity at two of its existing plants in Gujarat. The company will invest around Rs 40-50 crore towards capacity addition during this fiscal. After the expansion, company's total installed pipes making capacity will reach to around 85,000 tonnes per annum (TPA), from the current 65,000 tonnes.
"Considering the rise in demand from domestic buyers, we are expanding our existing facilities at Dholka and Santej near Ahmedabad. Also, we have acquired land at Hosur in Tamil Nadu to set up a new pipe making unit. The construction at the new plant will start in the next fiscal," said a senior company official. The company has three plants, one located at Himachal Pradesh and two in Gujarat.
The company has acquired about 22,500 square meter land for the new plant at Hosur. Astral aims to strengthen its presence in the southern markets. "Our exports are less, but we are more focused on domestic market. Our Hosur plant will help us reduce transportation costs and improve the delivery for south Indian market," said the official.
Looking at the financial performance of the company, its net sales grew by 40 per cent CAGR for the fiscal 2011-12. During the fiscal 2011-12, the company had expanded its capacity from 48,000 tonnes to about 65,000 tonnes.
The company shares have witnessed sharp increase since the start of the current fiscal. APTL shares jumped by over 42 per cent since April 1, 2012 to close at Rs 277.25 on Friday, September 21, 2012. The benchmark index, Sensex has gained over 7 per cent during the said period.
It may be noted that APTL was in the process to set up a joint venture with billionaire investor Warren Buffet's firm, Lubrizol Corporation for US $ 245-million (approx. Rs 1,356 crore at current exchange rates) chlorinated polyvinyl chloride (CPVC) unit, proposed to be set up at Dahej GIDC. However, no progress has been made so far.