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Plastic packaging firm Mold-Tek plans to expand its operations overseas by setting up a plant in Dubai next fiscal.
Although it is supplying packaging products to overseas markets, this will be its first manufacturing facility overseas. It now operates six plants in India, including three in Hyderabad and one at Satara in Maharashtra. It supplies packaging products for the paint, lubricant, food product and FMCG sectors.
“We will be investing about Rs 15 crore in the Dubai facility, which will have an initial capacity of 3,000 tonnes per annum,” J. Laxman Rao, CMD, told media-persons on Monday.
The firm is close to clinching a deal with makers of London Dairy brand of ice-cream for supplying the entire requirement of its packaging in the Dubai region. As the cost of transporting products from India to Dubai works out to nearly 23 per cent of the cost of the product, the company finds it more profitable to set up a plant there.
It is also planning a new plant in north India with a similar capacity and investment. “We will take up work on these two projects only next fiscal, as we reach full capacity at our latest plant in Satara this year,” Rao said.
The company just commissioned the Rs 12-crore Satara plant, dedicated to the requirements of Asian Paint’s manufacturing facility there. It is expected to generate revenues of Rs 30 crore this fiscal.
Last fiscal its turnover touched Rs 215 crore, and is expected to cross Rs 260 crore this fiscal, as domestic demand for decorated plastic packaging products rise, especially from the FMCG and food products sectors. India’s per capita packaging consumption is about $5, as compared to $100 internationally.
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