Suretex Prop To Tap Domestic Condom Market

Suretex Prophylactics (India) Ltd, the venture of the multi-billion dollar GP group of companies, will shortly tap the domestic condom market even as commercial production in their 100 per cent, Rs 17 crore export oriented latex condom manufacturing unit in Bangalore was flagged off yesterday.

The chief executive officer (ceo) of the company, M V Subba Rao told Business Standard that though the profit margins in the condom market in India was low, the market was attractive because of its sheer size. ``Condoms were sold at very cheap prices in India but, the consumption levels were voluminous with the government itself buying around 300 million pieces, reasoned Rao.

 

The demand for condoms in India was estimated to be around 1.2 billion pieces a year.

By setting up this export oriented unit condom unit in India, the parent company, Suretex Ltd, hopes to get closer to their customers in Europe, South East Asia and Africa. However, Suretex also has about $10 million investment plans for the expansion of the Bangalore unit and for setting up a glove and other medical devices manufacturing plants.

The Bangalore unit with an initial capacity of 150 million pieces will focus on the global demand for condoms estimated to be 8 billion. Of the total investment of Rs 17 crore, the unit has been set up with a Rs 6 crore investment by NRIs, while the rest has been marshalled through a term loan. This is Suretex Ltds third plant, while two other condom manufacturing units are located in Thailand and South Africa. Expecting a return of Rs 50 crore worth of exports from this Bangalore plant after a period of three years, the company has bagged export orders worth Rs 6 crore for 60 million pieces

In 1995, the parent company Suretex Ltd started off by manufacturing 180 million condoms from its main plant in Thailand, the capacity of which has risen to 360 million pieces today.