Finolex plans to ramp up capacity

The recent Union budget's decision to focus on irrigation and drinking water projects, has led large players in this sector like the Rs 1208 crore Finolex Industries to plan a ramp up in its capacity, in a bid to leverage the opportunities in this segment.

Senior company management of Finolex Industries highlighted that they are currently evaluating the feasibility of setting up a new plant with a capacity of 30,000 tonnes for the manufacture of PVC pipes either at Uttaranchal or Himachal Pradesh.

The company currently generates a significant portion of its operating income of Rs 1134 crore in the first nine months of FY08, relating to irrigation and drinking water projects that are being set - up in the western and southern parts of the country, point out analysts.

Senior company management pointed out the northern markets are being viewed as the next big growth opportunity for the company.

Says Saurabh Dhanorkar, assistant managing director - Finolex Industries, " the government's focus on agriculture and allied areas has created significant growth opportunities for the company over the next few years."