Astral Poly Technik adds a new growth engine in plastic tanks

Analysts positive on its foray, given the large industry size and synergy with existing business

India’s second-largest plastic pipe maker Astral Poly Technik’s foray into plastic storage tanks was taken positively by investors. Its stock jumped 3.2 per cent to close at Rs 1,498.40 on Thursday, even as markets were choppy before ending 1 per cent higher.

The company is acquiring assets of Shree Prabhu Petroc­h­emicals (SPPL) for Rs 51 crore and will be investing Rs 24 crore towards capacity addition. The acquisition, while being minuscule, offers significant growth opportunity for Astral, besides having vast synergies.

Astral is acquiring tank capacity of 500 million litres (rotomolding and blow molding), leverage SPPL’s brand Sarita, its network of 550