Finolex to invest Rs 100 crore for PVC pipes unit in Gujarat

In a bid to reach out to the northern parts of India at reduced transport costs, Pune-based Finolex Industries is planning to set up a PVC pipes manufacturing plant in Vadodara. The company intends to invest Rs 100 crore for building a unit with a capacity of 50,000 metric tonnes per annum.

A 21 acres agricultural land has already been purchased by Finolex Industries, which is awaiting Gujarat Pollution Control Board (GPCB) and NA land approvals, among others. The company intends to set up the PVC pipes and fittings manufacturing plant, its first in the state of Gujarat, on a total area of 35 acres approximately.

Refusing to divulge details of the land purchase, AB Atre, company secretary, Finolex Industries said, "The company is looking to cater to the northern parts of the country. However, supply from the current three plants in Urse, Chinchwad and Ratnagiri tends to prove costly. Also, with the Gujarat government encouraging more investments in the state, the favourable conditions attracted Finolex to look for Gujarat for the new plant." At a total capacity of 140,000 metric tonnes per annum from the three plants, Finolex Industries leads with a market share of about 34 per cent. The company hopes to consolidate its position in the northern parts of India once its fourth plant commissions.

According to Atre, the company also intends to sign a memorandum of understanding (MoU) with the Gujarat government during the upcoming Vibrant Gujarat Global Investors' Summit (VGGIS) 2011 to be held on January 12 and 13 near Ahmedabad.

The company expects to commission the plant in next two years from commencement of construction.

Meanwhile, apart from agricultural usages including irrigation, Finolex Industries aims to tap industrial, construction and other purposes for the PVC pipes.

"Almost 80-85 per cent of our pipes are used in agriculture segment," Atre added.