|
Archidply Industries Limited, a leading company in wooden interior products, on Monday announced its expansion plans of setting up new manufacturing facilities at Karnataka and Uttarakhand.
In Karnataka, the company has acquired 12.50 acres of land at Chintamani town near Bangalore for setting up new manufacturing capacity for Plain and Particle Board, Pre Laminated Particle Board and Decorative Plywood, Shyam Daga, Joint Managing Director and CFO, told reporters.
In addition to expansion in Karnataka, the company is also setting up a manufacturing facility for Medium Density Fibreboard (MDF) on its existing campus at Rudrapur.
The overall investment for the expansion was expected to run to the tune of Rs 83 crore out of which it had Rs 28 crore as term loan that was sanctioned. It hoped to raise the remaining amount by coming up with an IPO shortly by issuing 6.6 million shares. The company had filed Draft Red Herring Prospectus with SEBI in November 2007 and waiting approval.
As part of the growth strategy, Archidply proposed to move up the value chain by manufacturing products made to requirement of customers. The company has also entered into an agreement with `Home Town' for sale and display of products in Bangalote and Pune. "With the introduction of new products, we plan to leverage our distribution channels and increase our market presence in tier two and three cities", he said.
The company which currently has units at Mysore, Karnataka and Rudrapur was growing at 50 percent for the last two years and expected the same growth in the next two years. Source : The Economic Times |
