 "Ester targets three-fold growth in five years, riding on specialty polymers")
Riding on the growth in speciality polymer business, Ester Industries, one of the leading producers of polyester films and engineering plastics in India, expects a three-fold rise in its turnover from Rs 800 crore to Rs 2,500 crore in the next five years.
The firm’s promoters had bought back 5% stake from Vettel International in October for Rs 20 crore, to increase its focus on speciality polymers. Following this, the shareholding of the promoter Singhania family rose to 59.14%.
“The major driver for this growth would be our new business of speciality polymers as we’re the only company specialised in this unique market. Moreover, for speciality polymers, we are coming up with a Rs 150 crore plant in the western coast,” said an official source.
The company was able to achieve its break-even during the fourth quarter of the last financial year, owing to the growth in speciality polymers business. Of a turnover of Rs 800 crore, the share of speciality polymers was at Rs 67 crore during FY16, against Rs 20 crore in FY15.
The company has a market capitalisation of Rs 375 crore. It has a debt of around Rs 280-300 crore, of which, Rs 130 crore is long-term debt and the rest being working capital debt.
“We are in the process of bringing down the debt and the speciality polymer business growth will help us,” the official added. After the last quarter results, company chairman Arvind Singhania, too, had stressed on the importance of the speciality polymers business.