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Home arrow News arrow Business News arrow Innoventive Industries to invest Rs 163.06 crores on Capacity Expansion
Innoventive Industries to invest Rs 163.06 crores on Capacity Expansion Print E-mail
Written by Vivek   
Wednesday, 27 April 2011
Pune: Innoventive Industries plans to expand capacity at the company's manufacturing facility at Pimple Jagtap in Pune. The company's Rs 220 crore IPO has opened for subscription. In addition to the expansion it plans to utilize the funds for repayment of loans and general expenditure.

Innoventive makes precision steel tubes, tubular components, auto components, machined components and other steel products. It has six plants across Pune and Silvassa and exports some of the products.

The company proposes to invest Rs 163.06 crores on Capacity Expansion of it's Manufacturing Facility. The company will procure new equipments like pilger machines and other balancing equipments for manufacturing CEW precision tubes. With the expansion of it's CEW precision tubes manufacturing capacity the company plans to expand it's customer base and tap the domestic and global markets for precision tubes and other value added products.

Innoventive Industries plans to invest Rs. 121.07 crores in plant and machinery, Rs. 24.3 crore on Civil works and Rs. 73.7 crores on land.

It plans to to purchase about 7 acres of land around the existing manufacturing facility at Pimple Jagtap which will be used to consolidate operations, optimize plant layout & design and aid future capacity expansion.

The company is planning to add 85 pilgering machines of various capacities in order to expand CEW tubes manufacturing capacity. These machines will be sourced through various suppliers and will include imported machines. No second hand equipments have been purchased or are proposed to be purchased.

This will increase the available capacity to 55,316 MT in FY2012 (and normal capacity to 76,701 MT).

The price band of the issue is fixed between Rs 117 to Rs 120/share. The issue will be through a 100% book building process.

During the financial year 2009-10, the company reported consolidated revenue of Rs 425.15 crore and profit after tax of Rs 27.71 crore.

Last Updated ( Tuesday, 24 May 2011 )
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