Finolex to invest Rs. 100 crore to expand PVC pipes capacity.

Leading rigid PVC-U pipes and fittings manufacturer Finolex Industries Ltd. (FIL) plans to invest Rs. 100 crore in adding 1,00,000 tonnes of pipes capacity over the next three years.

'We are investing Rs. 100 crore in expanding our pipes capacity by 1,00,000 tonnes over the next three years period. After expansion, our pipes manufacturing capacity will go up to 350,000 tonnes,'Finolex Industries Managing Director Saurabh Dhanorkar told PTI.

'We are mainly into pipes and PVC resins manufacturing and keep adding capacities to meet the growing demand from agri and construction sectors. We have added 30,000 tonnes capacity in FY16,' he said.

The Rs. 100 crore expansion will be funded through internal accruals only as the company generates around Rs. 150-200 crore cash flows every year, Dhanorkar said.

The company's current debt is estimated at Rs. 500 crore and it aims to become debt free in three years, he added.

The Pune-headquartered company has state-of-the-art manufacturing plants located at Urse and Ratnagiri in Maharashtra and Masar in Gujarat.

The company manufactures PVC-U pipes and fittings in various sizes for diverse applications, prominently in agriculture and also in non-agriculture sector including housing, telecom, construction and industries.

ET