State-run Hindustan Prefab today said it would set up six pre-fabricated concrete and steel components manufacturing plants across the country in the next five years, with an investment of around Rs 600 crore.
"We have got in-principle approval from the government to put up these factories. These will come up in Delhi, NCR, Mumbai and one each in the eastern, southern and north-eastern parts of the country. These will come in phases over the next five years," Hindustan Prefab Chairman and Managing Director Jaiveer Srivastavaa said.
Srivastavaa said the plants would manufacture prefabricated concrete and steel components like floor, wall and roof panels, columns and beams – almost all required to erect a prefabricated building which save cost and time.
While the proposed plant in Delhi is expected to be operational in the next six months as the company is in possession with the land and other necessary clearances, the second one might take around three years from now to go on stream, he said, on the sidelines of National CSR Conclave organised by PSUs here.
"We had reported Rs 203 crore turnover in the last fiscal. In the current fiscal, it is expected to touch Rs 250-300 crore. In three years from now, when at least two of our factories start production, our topline should be around Rs 1,000 crore," he said.
Srivastava said that once all the proposed six proposed factories would be operational, Hindustan Prefab's turnover will go up to Rs 2,000 crore. He has recently got a five-year extension.
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"We are toying up with various ideas on funding of the proposed factories. These include being the promoter ourselves for all the factories and funding on our own for each of factories.
"We may also opt for creating special purpose vehicles for the factories and taking either local governments or any central public sector enterprise on board by giving certain amount of stake. The final decision on funding is yet to be taken," Srivastavaa said.
In case, it moves ahead on its own, Hindustan Prefab might go for soft loan from any sister public sector enterprise rather than look for bank finance, which might be costlier.
Asked whether, the company would look for setting up a cement plant for securing raw material, he answered in the negative saying, "That is not our domain". For steel, it might enter into a tie-up with Steel Authority of India or any other public sector enterprises.