Kabra Extrusiontechnik has announced plans to expand capacity at Daman at an outlay of Rs 85 crores. The expansion involves investment in machinery and other utilities but it does not include investment in land and building. The buildings will be on lease. The new machines will be required to increase capacity as well assembly space.
KET is essentially a debt free company and the expansion will be mainly funded by internal accruals and some funds from the bank.
The company has seen a Rs 6.5 crore profit this quarter as compared to Rs 97 lakhs in the last quarter. This has been essentially due to very good growth for PVC pipes and blow film plants. With several orders in hand, the company expects to see good growth in the PVC pipe segment because of thrust on agriculture, irrigation, water management, infrastructure. Also the company has seen good growth in exports that have increased by about 28% in the last nine months vs the previous nine months. AT current levels, the company expects a total sale in the year of about Rs 190-195 crore.