Expansion seems to be the way forward for many Rajkot-based industries, as many big players across industries are preparing to hit the stock market.
While some of the Rajkot based companies like Atul Auto and Raju Engineering are already listed, India’s second largest fiber glass composite products maker EPP Composites Privet Limited that is targeting to get listed on the bourses, has drawn up extensive expansion plans. Others include agri-retail player Champion Agro and machine tool maker Jyoti CNC. EPP is planning to invest Rs 250-300 crore for setting up an integrated composite complex near Rajkot.The first phase investments would be to the tune of Rs 70 crore. The Rajkot based company that is currently growing at 25 per cent is aiming to achieve a 100 per cent growth by next year.
“Our vision is to become the world’s leading company for fiber glass composites products by 2020 and the integrated complex is one big step towards this. We are setting up an integrated composite complex on 100 acres land with an overall investment of Rs 250-300 crore”, said Jayraj Shah, director of EPP. After the completion of the first phase of the project, EPP is also planning to come up with an initial public offer (IPO) to the tune of Rs 500 crore in 2013-14.
Champion Agro Limited is also coming up with an IPO. Dhirubhai Patel, chairman and managing director of Champion Agro Limited said, “Our IPO will come within a year. The size of the public issue will be about Rs 150-200 crore and the company has started working towards it. Together with agri-retailing, we are also going to set up cold storages, agri processing units and warehouses."
The company which already has 35 agri-retailing outlets in the Saurashtra region, will now open around 400 outlets at a taluka level across Gujarat in the coming five years. It will open 50 new outlets by the end of this year for an investment of Rs 15 crore. The overall investment planned is between Rs 300 to Rs 400 crore.
Machine tool maker Jyoti CNC Automation private limited too is on an expansion drive.
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It plans to invest close to Rs 250 crore to expand its production capacity three-fold from a current 1,000 units per annum to 3,000 units per annum within the next two years. Of this, the company will invest Rs 135 crore this year to expand production related infrastructure. Moreover it will also work technology up-gradation.
“While an IPO is on our mind but we are still to decide on the size and the time to go for it. Most probably it will be after five years as we are presently focusing on our expansion”, said Parakramsinh Jadeja, chairman and managing director of Jyoti CNC Automation Private Ltd.