OK Play India Ltd. is in the midst of a $32 million expansion, aimed at increasing its product range for industrial and automobile customers, according to Managing Director Rajan Handa.
The expansion is related to the company's alliance with Delano, Minn.-based rotational molder Solar Plastics Inc.
``We have now embarked on a major expansion program,'' Handa said in a recent interview at OK Play's headquarters in Mewat, near New Delhi. He highlighted five key end markets: toys and large outdoor playground facilities; furniture; automobile parts; infrastructure systems such as water and sewage tanks; and the retail sector.
Under the alliance, which was signed in August, Solar Plastics will provide technical and marketing support as OK Play expands into industrial applications for its geographic region.
Additionally, OK Play has a 10-year exclusive contract to market Solar Plastics products in the Indian subcontinent, according to Anirudh Raghuvanshi, OK Play's president for strategic business.
Going forward, Raghuvanshi sees OK Play expanding its infrastructure range of products, such as concrete pipes for the water sector, which can replace the existing networks of metal pipe in major Indian cities.
OK Play also is focusing on developing its own innovative products. Handa acknowledges the constant threat of pirating OK Play designs and products.
He said OK Play plans to stay focused on the large Indian market. The company is opening new manufacturing facilities in Bawal, Nalagarh and Chennai.
With these three facilities in operation by next year, Handa projects 70 percent sales growth.
The firm has a healthy growth rate, averaging 25 percent in recent years, expected to be repeated this year, he said.
Market demand is strong, while the rising cost of polypropylene and polyethylene are managed through cost-effective production measures, he said.
Established in 1989, OK Play is ISO 9001 certified and has been listed on the Bombay Stock Exchange since 1994.