Building material maker Everest Industries today said it will set up a new manufacturing facility in East India to cater to the growing demand as it aims to cross Rs 1,000 crore revenue in 2011-12.
"We are looking at setting up a new manufacturing facility in one of the Eastern states. The plant will be commissioned within a year and it will be fully operational in 15 months," Everest Industries Executive Director (Operations) Y Srinivasa Rao told PTI.
The company is looking at acquiring about 22 acres for the facility that will start with the production of roofing materials and other products will be rolled out in a phased manner, he added.
Rao, however, declined to share further details such as the possible location and likely investment for the construction of the plant.
Industry sources, however, said the company has been offered land by the Orissa government and the firm has also decided to go into the state.
When asked about its sales target, Rao said: "We cannot remain a sub-thousand crore entity. Our target is to cross Rs 1,000 crore revenue in next fiscal."
Everest is expecting its total income to grow 12-15% in this fiscal from Rs 660 crore in 2009-10, he added.
"For the last 4-5 years, our revenue has been increasing at 20-25% compound annual growth rate. This year it is slow because the market did not pick up well, and also because of our capacity constraints," Rao said.
Everest Industries currently has five manufacturing facilities in Kolkata, Nashik, Coimbatore, Kymore and Roorkee. It manufactures products like roofing materials, fibre wall boards and steel building solutions.
"We are seriously considering to expand our steel building solutions capacity as there is good growth in this business. We are looking at both expanding the existing plants and adding more facilities," Rao said, without giving details.
The company's current annual production capacity for steel building material is about 30,000 tonne at its Roorkee facility.
Besides, the company is likely to consider setting up a new factory for the fibre cement boards as it is at present utilising almost 100% of its 90,000 tonne of installed capacity across different plants.
The company is now undertaking de-bottlenecking of operations and other efficiency enhancement measures to increase productivity till the new plants come up, he added.
