Supreme Industries said that it has received approval to manufacture and market 265 litre capacity type-IV composite CNG cylinders from Petroleum and Explosive Safety Organization (PESO).
The company has set up a pilot plant to manufacture type-IV composite CNG cylinders for supply of CNG through cascades with an annual installed capacity of 3,600 cylinders with a revenue potential of about Rs 60 crore per annum. The capacity will be further enhanced to address huge market for composite CNG cylinders.
CNG tanks have an increased demand due to the market shift of vehicles towards the use of CNG which is much cheaper and environment friendly. The composite CNG cylinders for cascades are lighter in weight compared to currently used steel CNG cylinders.
"Supreme is second manufacturer in India to get the approval to manufacture type-IV composite CNG cylinders, the company said in a statement.
Supreme Industries is engaged mainly in production of plastic products and operate in various product categories like Plastic piping system, cross laminated films & products, protective packaging products, industrial molded components, molded furniture, storage & material handling products, performance packaging films and composite LPG cylinders.
The scrip shed% to currently trade at Rs 4315 on the BSE.
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