Sintex Industries Ltd. of Kalol, India, plans to spend $60 million for growth in India, the United States and Europe.
``We are in the process of more significant acquisitions,'' said Venkatachalam Ayyar, operations president of the firm's plastics division, in an interview at the Global Pultrusion Technology Conference, June 7-8 in Baltimore.
Sintex said it has purchased 81 percent of Wausaukee Composites Inc. of Wausaukee, Wis., for $20.6 million in an initial move to expand its capabilities beyond India. Sintex already exports extensively to the U.S. and Europe.
More is in the wings. Sintex said it will use the money for acquisitions, with a focus on the automotive and electrical markets.
Ayyar said the plastics division sees particular market growth in its production of electrical meter boxes with sheet molded compounds. Current daily volume is about 8,000 boxes, according to Ayyar. Cummins Power Generation Inc. in Minneapolis is a major customer.
Other growth involves Sintex's prefabricated structures, including classrooms, base transceiver station shelters, kiosks, temporary shelters and military housing. In addition, the firm will use rotational molding to make water tanks of 52-6,500 gallons, waste bins and ice chest coolers.
In India, the division uses 13 plastics and polymer-matrix-composite manufacturing processes. The division has eight facilities with a total of 7.4 million square feet, and it operates 100 rotomolding machines; 60 presses for processing sheet molding compound; 50 PVC profile extruders for doors, windows and cooling towers; six blow molding machines for containers of 8-52 gallons; and a twin-sheet Brown thermoformer for pallets, separator trays and portable restrooms.
Sintex targets the petroleum and waste-water treatment sectors for fiber-reinforced-plastic underground tanks. The company licensed the storage-tank technology from Containment Solutions Inc. of Conroe, Texas.
Ayyar said the plastics division accounts for about 75 percent of Sintex's sales.
For the fiscal year ended March 31, Sintex reported profit of 1.3 billion rupees ($29.9 million) on sales of 11.4 billion rupees ($262.5 million). The company's shares trade on the stock exchange in Mumbai, India.
Sintex began manufacturing plastic products in 1975. The company's plastics division has grown faster than its textiles division, which began operations in 1931 and functioned for many years as Bharat Vijay Mills Ltd. The current management team took charge in 1956.