Jindal Poly to double production

To raise Rs 300 cr through book building route

Jindal Poly Films Limited, the country's largest manufacturer of flexible packaging films, plans to increase its annual production capacity from 45,000 tonnes to over 90,000 tones in the next one-and-a-half years.

Addressing a media conference in connection with the company's forthcoming public issue, Punit Gupta, director, Jindal Poly Films Limited, said the company is now focusing more on high-value products in BOPET (polyester films) and BOPP (Polipropylene films) to insulate any trade restrictions on low-end products in the US or Europe. Over 36 per cent of the company's net profits during 2004-05 was from exports.

"As of now, we are better placed over our competitors as the company is not subjected to anti-dumping duties. Moreover, we are focusing on export of quoted films to the US which do not have the risk of anti-dumping duties either," he said.

At the domestic level, replacement of cheaper packaging material is catching up and the major growth domain would be food packaging and retail businesses, which are expected to increase the demand for BOPET and BOPP products, he said.

Proceeds from the public issue would be invested in the capacity expansion, he said. Jindal has already announced the launch of its public issue to raise over Rs 300 crore through a book-building route to fund the expansion.

The issue opens on June 9, 2005 and closes on June 15, 2005. The price band of the issue will be decided at least a day before the issue opening date, Punit said.