Manaksia Aluminium Company, a part of the Kolkata, India based Manaksia Group, is planning to invest INR 40 crore in order to add 15-20 per cent more capacity over the next one year. Manaksia Aluminium is a manufacturer of value-added aluminium products such as colour-coated roofing and panelling that are used in automobiles, air conditioning, warehousing and vans.
The NSE and BSE listed company is currently operating at 80-85 per cent capacity at its Haldia unit in West Bengal. According to Sunil Agrawal, Managing Director, the company is planning to increase the total capacity to 21,000 tpy aluminium products from its existing capacity of 18,000 tpy at its Haldia unit.
“We will look at both internal accruals and loans to fund the capex. Capacity addition would come mostly from debottlenecking at Haldia,” Mr Agrawal said during a logistics conclave, organised by the Bengal Chamber of Commerce and Industry.
Manaksia Aluminium has a second unit at Bankura in West Bengal that manufactures aluminium alloys for making auto components. After upgrading their Haldia unit, the company plans to manufacture higher margin and value-added products such as special alloys that are used in marine applications and refrigeration. These new product offerings will have a revenue margin between 12 and 15 per cent compared to the regular offerings that have a margin of 7-8 per cent.
Agrawal is optimistic about rising prices of aluminium supported by growing demand for aluminium products in India which helped Manaksia Aluminium post a healthy profit and a 15 per cent growth in top-line this fiscal to INR 300 crore. In the first six months of FY 2018, it posted a net profit of ₹1.56 crore and a turnover of INR 130 crore against a loss of INR 4.61 crore in FY17.
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