The board of directors of Deep Polymers plan to consider bonus and raising authorised capital to fund its upcoming project

The Board will meet on January 15 to discuss the proposals.

At the same time, the company will also increase the authorised capital. Deep Polymers board will also discuss plans to raise ₹50 crore.

Earlier, the company had said it would set up a new manufacturing unit in Gandhinagar, Gujarat on recently purchased 33,600 square metres of land. The company, which mainly manufactures anti-fab masterbatch, will focus on growth and innovation.

Masterbatch is a concentrated mixture of pigments and additives encapsulated during a heat process into a carrier resin which is then cooled and cut into a granular shape. Masterbatch allows the processor to color raw polymer economically during the plastics process.

The company expects the project to set up new plant to start in 6 to 8 months. The plant will pave the way to increase its market share.

Led by entrepreneur Ramesh Patel, Deep Polymers manufactures a 25,000 tonnes filler masterbatch annually.

The company will seek regulatory and other approvals to raise funds by releasing equity shares. A Rights Issue may also follow suit, sources said.

The company said it plans to diversify business to achieve higher growth. The new manufacturing unit will manufacture two speciality products -- black and colour masterbatches.

Both the speciality masterbatches will be used in different type of fibers. The company will purchase machinery from Coprian, a leading company in Germany. Both these machines will produce 310 tonne a month, it said.

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