With its presence well established in West, North and South markets, Astral Poly Technik, the leading plumbing pipes maker, is now looking to capture Eastern market. The company is planning to set up a new greenfield plant in East India with 20000 MT capacity by the end of next financial year.
However, the target seems to be little ambitious as the company has not yet decided the location for its plant in East India. According to sources close to the management, the company will freeze on the location by the end of this quarter itself and construction will start in the beginning of next financial year. In all the company plans to add 70000-75000MT pipe manufacturing capacity at various locations, including Eastern India. The company has current pipe (standalone) manufacturing capacity of 1.7 lakh tonnes.
The company’s expansion plan in Jaipur, Hosur and Santej is complete and the CPVC and PVC products will roll out from these plant from this quarter itself.
However, in the near future the company will be busy in tackling the problem arising out of liquidity crunch due to NBFC crisis. NBFC crisis has affected the funds flow to realty sector, the company’s main user industry and as such it is finding little difficult in pushing up its topline. The company is reportedly resorting to channel financing to tide over the situation.