There was a volume growth of 17% to 66808 MT during Sep'16 quarter on YoY basis. On half yearly basis, the volume grew by 8% to 163853 MT. Overall for 12 months period ended Mar'17, the management envisages a volume growth of around 12-15%. Management is confident of achieving the same.

Better business opportunity, increase in government spending and strong monsoon, all augers well for the plastic consumption.

Industrial side demand also is picking up gradually due to government spending while private sector spending is still awaited.

Sale of value added products for 3 months ended Sep'16 stood at 34.74% Vs 33.80% on YoY basis. Management expects the value added products sale to continue to remain robust.

Plastic piping business value wise grew by 6% on YoY basis and grew by 11% in volume terms for quarter ended Sep'16. The segment reported an OPM of around 16.14%. Demand for Piping has improved from housing, agriculture, drinking water and storage demand from state government etc. While auto demand is also strong and the company is adding new customers.

Packaging products de-grew by 4% on YoY basis in volume terms while value growth was lower by 1.9% for the quarter ended Sep'16. The segment reported an OPM of around 20.5% for Sep'16 quarter as compared to 23%.

Industrial segment value wise grew by around 1.8% while volume terms also the segment grew by 4.5% for Sep'16 quarter on YoY basis. The segment reported an OPM of around 12.5% as compared to 12.8%. Industrial segment is slowly showing good growth and management expects the segment to improve every quarter in FY'17.

Consumer segment volume wise grew by around 14% for Sep'16 quarter while value wise growth was higher by 7.3% on YoY basis.

Net borrowing for the company as on Sep'16 stood at Rs 280 crore. The company expects to reduce debt by further Rs 100 crore during the year ended Mar'17. Average rate of borrowing is around 7.4%.

There has been a continuous decline in CPVC volumes due to increase in imports. Weaker construction is also affecting the overall volumes. For H1 ended Sep'16, the volumes of CPVC stood at 5731 MT as compared to 6874 MT for H1 ended Sep'15.

The company has introduced many value added products and all the products are well accepted in the market.

Overall, the momentum continues to remain strong and management expects growth to continue.

The company expects to incur a capex of about Rs 250 crore for 12 months period ended Mar.'17. This includes 20000 tons annual capacity of PVC pipes at Jalgaon and new extrusion lines for PVC pipes and PE pipes at Kharagpur, land for performance packaging films, energy efficient machines in plastic piping and furniture division, new range of product offerings in plastic piping systems, furniture products, material handling products, roto moulded products and bathroom fittings, to invest in balancing equipments and automation at all plants and to increase the capacities of protective packaging products at Malanpur and Hosur and to add varieties of other products.