Hydro S&S to set up a new reinforced polypropylene compound plant in Pune

12-Jan-07

To handle the increasing requirements of automotive OEMs due to expansion of General Motors and Mahindra & Mahindra and the re-entry of Fiat and the new project of Volkswagen around Pune, Chennai-based Hydro S&S Industries, plans to set up a new manufacturing facility in Pune. The new unit will facilitate proximity to moulders and OEMs and allow the company to provide enhanced levels of delivery performance by cutting freight cost. The new facility, with an initial capacity of 6000 tpa, to b set up at an investment outlay of Rs 6 to 8 crore, will become operational by March 2008. Hydro S&S Industries is part of W S Industries group and a major producer of specialised reinforced polypropylene compounds for automotive, appliance and furniture. Its existing facilities include two compounding facilities in Tamil Nadu and Pondicherry with a processing capability of about 18,000 tpa. Sales of the company to the auto segment currently accounts for more than 85% of its output, as Hydro emerges a major vendor of specialised compounds to Hyundai, Tata Motors, General Motors, etc. Robust growth of the car segment, that will increase consumption of PP compounds, will boost sales of Hydro S&S to an estimated Rs 100 crore in 2006-07 from Rs 81 crore last year. Upon completion of the new project in Pune (to contribute an estimated Rs 50 crore to sales), the company is hopeful of doubling sales to Rs 200 crore in two years.