Packaging material maker Bharat Box Factory today said it will invest Rs 100 crore in setting up a plant for corrugated boxes and in expanding manufacturing capacity as part of its efforts to achieve Rs 1,000 crore turnover by 2010-11.
Apart from this, the company has also installed a paper and paper-board manufacturing plant at Kathua in Jammu in technical collaboration with Samsung with an investment of Rs 280 crore in line with its backward integration plan.
"We will be investing close to Rs 100 crore in setting up new plant as well as enhancing existing capacities of coil and packaging capacities during this year," company's Managing Director Parveen Aggarwal told PTI.
As per the plans, the company has proposed to set up a plant for manufacturing corrugated boxes at Ludhiana with a capital outlay of Rs 45 crore, which would cater to several industry verticals, including electronic appliances.
"This new plant is expected to be operational with next seven months," he said.
The company would also raise the capacity of mosquito coil making facility by 40 per cent with an investment of Rs 25 crore. "The additional capacity will allow us to promote our own brand (Chakravyooh) of mosquito coil in the domestic market to strengthen our position in this segment and reduce dependence on other brands," he said.
The company, which claims to be one of the largest makers of mosquito coils in the country, produces coils on contract manufacturing basis for various brands, including Allout, Mortien, Good Knight and Maxo.
In plastics and packaging sector, the company has plans to invest a sum of Rs 30 crore for increasing their capacities by 25 per cent.
The fresh investments would be funded through internal accruals and debts, he said.
The commissioning of its new paper-board plant at Kathua would allow the company to meet its own paper requirement and cater to demands emerging from companies located in northern region. "The new plant, having capacity of 290 tonne per day, will meet our paper needs as well as support requirement of other industries," Aggarwal said.
Expecting to clock the current fiscal end with sales of Rs 650 crore, the company, post expansion, has projected to achieve sales of Rs 1,000 crore by March 2011.
"Bulk of revenue will come from own brands (25 per cent) and paper (30 per cent) segments while rest will be from plastic and contractual manufacturing," he said. The company achieved sales of Rs 450 crore in 2008-09.
