One of India's largest plastics processors, Supreme Industries Ltd., plans to open a PVC pipe and packaging plant in West Bengal state in its current fiscal year, as part of an effort to boost capital spending by one-third to 200 crore rupee ($33.27 million).
Mumbai-based Supreme said the majority of its capital spending this year would go to the new facility in Kharagpur, which will likely be functional in the second half of 2015.
“The forthcoming Bengal plant is the 24th unit of Supreme Industries, which would initially produce 25,000 tonnes plus PVC pipe and fittings and 10,000 tonnes of protective packaging,” a spokesman told Plastics News. “The capacity would be raised over a period of time depending upon the market demand.”
For the 12 months ending June 30, Supreme said its plastic pipe business saw volume rise 7 percent and sales grow 22 percent. Volume in its plastics packaging business rose 5 percent and sales grew 16 percent, the company said.
Supreme opened its 23rd factory, a PVC pipe and fittings plant in Malanpur, about nine months ago. The factory has a capacity of 61,000 metric tons annually with an investment of around 140 crore rupees, or about $22.4 million.
Now, the company said it will install rotational and blow molding equipment at Malanpur and expand the capacity of protective packaging products at Hosur and Malanpur.
The company also started commercial production of a composite liquefied petroleum gas cylinder facility in Halol, with an installed capacity of about 450,000 cylinders.
In addition, the company plans to replace/install energy-efficient injection molding equipment at its industrial product division plants in Jalgaon and Malanpur.
The company said its production volumes increased 2 percent in its most recent fiscal year, to 275,400 metric tons, while sales rose 14 percent to 3,228 crore rupees, or $517.4 million.