Date:18/02/2004 URL: http://www.thehindubusinessline.com/2004/02/18/stories/2004021800451700.htm

Back Finolex to strengthen distribution network

Our Bureau

Kochi , Feb. 17

THE Pune-based Finolex Industries, one of the leading manufacturers of PVC pipes in the country, has chalked out a plan to strengthen its distribution network in Kerala.

The company, which has identified the State as one of the thrust areas to market its pipes used in both residential and commercial complexes, is planning to set up 400 major outlets in the State for distribution of the product, Mr Vivek Khandekar, President, Finolex Industries Ltd, told reporters.

As Kerala is a "quality-conscious" market, the company is focussed on providing quality pipes to customers to enhance the life of structures. "We will have a good launching pad from the State because of the presence of Finolex cables in the market. We are aiming a Rs 25 crore turnover from the State in the next three years," he said.

The recent thrust of the Government to augment drip irrigation in the country to boost agricultural production has resulted in a great demand for pipes and the organised sector of the pipes industry stands to reap a rich harvest in terms of increased demand from several States. The Government of Andhra Pradesh has already taken the lead by launching a Rs 1,200-crore micro-irrigation project, Mr Khandekar said.

The demand-supply gap for PVC is also expected to widen in the coming years and industry estimates are that the demand for PVC may rise by about three lakh tonnes in the next 2-3 years, he added.

For the quarter ended December 31, 2003, the company's net profit more than doubled to Rs 28.4 crore compared with Rs 12.86 crore in the quarter ended December 2002. The turnover increased by 18 per cent to Rs 266.64 crore (Rs 226.28 crore), he said.

Mr K. Narayanan, Assistant General Manager (Sales), said that the company, which is the leader in agricultural pipes, has recently announced a Rs 525-crore expansion plan aimed at increasing the capacities of PVC (polyvinyl chloride), the raw material in the manufacture of pipes,to 2.6 lakh tonnes.

The capacity of pipes will also be raised to 65,000 tonnes. The project is being developed at Ratnagiri, the coastal belt of Maharashtra, he said.