Mold-Tek Packaging Confident Of 15-17% Volume Growth In FY20
Mold-Tek Packaging Ltd. expects a volume growth of around 15-17 percent this fiscal due to new orders and commissioning of additional capacity at its plants.
“Volume growth should pick up in the coming quarters with addition of equipment, new orders of edible oil and plants at Visakhapatnam and Mysuru getting into production,” its Chairman and Managing Director J Lakshmana Rao told BloombergQuint.
The growth, according to Rao, could sustain for at least 3-4 years because annual capacity of these plants will be ramped up from around 3,000 tonnes to 7,000 tonnes each during this period.
The company expects additional investment of around Rs 30 crore for the year ending March 2020 to be managed through internal cash accruals and may opt for term loans if needed. “Unless we set up our plant (in north India) in a bigger way than we have anticipated now, there won’t be need for even term loans in the next financial year.”
Going forward, this additional capacity (of Mysuru and Visakhapatnam plants) will probably enhance our overall capacity by 15-17 percent.J Lakshmana Rao, Chairman and Managing Director, Mold-Tek Packaging
Margin Of Foods Vertical
The margin of its foods and fast-moving consumer goods vertical is twice the overall average, said Rao, adding that it was due to complex technology involved in smaller packets and containers.