Mold-Tek to invest Rs 50 cr on new plant in Telangana
Earmarks investment of `200 crore in next 3 yrs
Hyderabad: Hyderabad-based Mold-Tek Packaging Limited is planning to set up clean room facilities to start catering to the Rs 5,000-crore market. Initially, it will set up a 10,000-sq ft facility by April 2022, with an investment of Rs 10 crore and aims to expand it progressively to a 50,000-sq ft facility at IDA Sulthanpur, Ranga Reddy district.
The plant can house 30 injection blow moulding (IBM) machines and IM machines for caps, with a total outlay of Rs 50 crore in two phases during the period 2022-2024. Further, the company also wants to establish a new plant in Uttar Pradesh to cater to the demand in North region and in particular demand from Kansai Nerolac Paints and Berger paints.
The company has acquired 2.61 acres of land from Uttar Pradesh State Industrial Development Corporation. Pilot project is starting next month in leased premises at Unnao, Kanpur. The new plant is likely to be fully functional by end of next year, with an investment of Rs 20 crore.
Mold-Tek has been investing on innovative product range, capacity enhancement, setting up new manufacturing plants near to client's location to reap transport cost benefits. The new investments in last five years are to the tune of Rs 210 crore, while the gross investments is Rs 140 crore since 30 years from inception to 2016.
With the diversification into IBM products and various geographical expansions, the company hopes to invest Rs 200 crore in next three years, subject to market conditions. J Laxman Rao, Chairman and Managing Director of Mold-TekGroup, said: "Our entry into IBM products for pharma and cosmetics is a logical extension to exploit better value addition."
"This will enhance the shareholders wealth using our immense technological, innovative skills and backward integrated IML facilities and long standing business relations with major MNCs in India. We have taken many market friendly initiatives at a time when Indian companies started perceiving packaging as a value add to their end products," he added.
The CMD further said, "In spite of Covid second wave, Mold-Tek is expecting to reach a net turnover of Rs 600 crore with a growth rate of 25 per cent over last financial year, subject to control of pandemic.
Introduction of QR coded IML, expansions at Mysuru and Vizag and new plant in Kanpur our business will grow consistently in next few years."