Ahmedabad-based Astral Poly Technik is setting up a new production facility at Rajasthan at an initial investment of about Rs 70 crore. The company will be manufacturing pipes and fitting materials at the Rajasthan plant.
Astral, which already has two manufacturing units in Ahmedabad and one in Bangalore, will see the new unit at Rajasthan become operational by October 2017.
"To cater to the markets of Rajasthan, Uttar Pradesh and Delhi, we are setting up manufacturing facility at Rajasthan. In the first phase, the company is going to invest about Rs 70 crore including land, building and machinery," said Sandeep Engineer, managing director of Astral Poly Technik.
At the initial stage, the Rajasthan plant will have production capacity of 20,000 tonnes per annum and will gradually increase production as per the requirement. "We will invest further in the plant as per the requirement in second phase. Production capacity will also increase in the next phase," said Engineer.
Astral has joined hands with Japan-based Sekisui Chemical Company to source raw material for Chlorinated Poly Vinyl Chloride (CPVC) manufacturing and backward integration.
Hiranand Savlani, chief financial officer of Astral, said: "With this strategic tie up with Sekisui, we want to make ourselves self sufficient with our own brand. We have already added 35,000 capacity in our Ahmedabad plant and invested about Rs 50 crore on backward integration."
Based on the overall expansion, Astral expects 15-20% growth in the next financial year as against 12% last year. The company has reported a turnover of Rs 1,750 crore, with a net profit of Rs 100 crore in 2015-16. Astral has installed production capacity of 1,27,762 tonnes at its facilities in Gujarat and Karnataka.