Bluplast plans Rs 35 cr IPO to fund expansion

Bluplast Industries, a plastic and thermoware company, has lined up a Rs 32 crore expansion plan, which includes setting up a PVC wood coating plant as well as expanding capacity of the existing plastic plant.

The funding would be done through internal accruals and a Rs 30-35 crore initial public offering (IPO). Post-issue, promoters' stake in the company will go down to 42 per cent.

Kamlesh Jain, chairman and managing director said, "This is the first PVC wood composite plant in the country, where we hope to start commercial production by July."

Machinery worth Rs 15 crore is being imported from Taiwan and the unit will be set up in Daman. "The product will be used for doors, windows and floors," said Jain.

Since the price would be up to 40 per cent lower than high-end wood, Jain expects it to be popular with increased brand awareness. The company has set aside Rs 1 crore for brand promotion.

"The product is water and termite-proof, needs low maintenance, which is why it is a very good substitute for wood," feels Jain.

The company is the third largest player in the thermoware market in the country after Milton and Cello. In the last fiscal, its turnover was Rs 43.49 crore and profit after tax Rs 1.60 crore.