VIP to increase Nagpur facility's capacity

VIP Industries plans to invest Rs 3 crore to increase manufacturing capacity of its Nashik facility by December 2006.

The company targets 50 per cent export growth in the current fiscal year (2006-07) and plans to add another 30-35 exclusive retail outlets across the country by March 2007.

Speaking to Business Standard P K Ramakrishnan, executive director, VIP Industries and V S Mani, chief financial officer of Blow Plast, said, "Currently, the manufacturing capacity of the Nashik facility is 3,500 lakh moulded luggage per month. The company is in process of increasing manufacturing capacity of ABS/Polycarbonate products and is also setting up additional capacity for vaccum formed luggage goods at Nashik. This will increase the capacity of the Nashik facility by 15,000 units."

Currently, the company has 100 exclusive retail stores across the country.The company has set up its exports offices at London and Dubai, which has led to closer interaction with the Middle East and African Markets, they added.

The sales turn over of the company in the FY06 was Rs 320.46 crore, with 5.16 per cent growth compared with the previous financial year (2004-05). The company is eyeing 20 per cent growth in sales turn over in the current financial year.

On the export front, the company has registered substantial growth. In the financial year 2005-06, the company's export has increased 57 per cent to Rs 54.29 crore, compared the the same period a year ago. The company's export in fiscal year 2004-05 was Rs 34.58 crore.The company exported sizeable quantity of luggage to Europe, Africa, the Middle East and South East Asian Countries.

The company has just set up Rs 20 crore manufacturing plant at Haridwar in Uttaranchal. This plant has started commercial operations with effect from April 6, 2006. The manufacturing capacity of this plant is two million units per annum.