Leading rigid PVC-U pipes and fittings manufacturer Finolex Industries Ltd (FIL) plans to invest Rs 100 crore in adding 1,00,000 tonnes of pipes capacity over the next three years.
"We are investing Rs 100 crore in expanding our pipes capacity by 1,00,000 tonnes over the next three years period. After expansion, our pipes manufacturing capacity will go up to 350,000 tonnes," Finolex Industries Managing Director Saurabh Dhanorkar told PTI here.
"We are mainly into pipes and PVC resins manufacturing and keep adding capacities to meet the growing demand from agri and construction sectors. We have added 30,000 tonnes capacity in FY16," he said.
The Rs 100 crore expansion will be funded through internal accruals only as the company generates around Rs 150-200 crore cash flows every year, Dhanorkar said.
The company's current debt is estimated at Rs 500 crore and it aims to become debt free in three years, he added.
The Pune-headquartered company has state-of-the-art manufacturing plants located at Urse and Ratnagiri in Maharashtra and Masar in Gujarat.
The company manufactures PVC-U pipes and fittings in various sizes for diverse applications, prominently in agriculture and also in non-agriculture sector including housing, telecom, construction and industries.
Only 45 per cent of cultivated area in the country gets irrigation water and farmers are dependent on monsoon.
The government's plan to expand irrigation network is expected to fuel the demand for PVC pipes and fittings, he said.
The 'housing for all' and low cost housing projects are also expected to create huge demand for pipes and fittings, he added.
FIL enjoys leadership position in the country and sells through a network of more than 15,000 direct and indirect retail outlets spread across India.
The company is now looking to tie up with international players to distribute imported products.
As part of its CSR activity, the company plans to serve rural markets with education, healthcare and water needs, he added.
