The Hindu : Business : Uniply to tap market

Online edition of India's National Newspaper
Wednesday, Jun 01, 2005

Business

Business

Uniply to tap market

Corporate Reporter

To double production capacity

CHENNAI: The Chennai-based Uniply Industries, engaged in manufacturing and marketing plywood and panel products, is doubling its production capacity at an outlay of Rs. 12 crores.

Addressing presspersons here recently, the Managing Director, Uniply, B. L. Bengani, said the company set up an integrated manufacturing unit in 2000 for producing veneers, resins and plywood at Nelveli village, Kancheepuram district, in Tamil Nadu. To meet the growing demand both in domestic and overseas markets, the company was planning to increase the production capacity of veneers and plywood to 50,000 cubic meters from 25,000 cubic meters annually. The expansion project would include additional plant and machinery besides construction of RCC log ponds, factory shed and buildings in the factory premises and installation of wind electricity generators.

Mr. Bengani said the company was planning to install wind electricity generators (4 x 225 kW each) at a cost of Rs. 3.60 crore to the meet the entire power needs of the factory.

The total time for completion of the project was estimated to be seven months and the project implementation work would start immediately on realisation of funds to be raised through the issue of equity shares to public.

The company is entering the capital market with 50 lakh equity shares of Rs. 10 each for cash at a premium of Rs. 14 per equity share. The issue opens on June 9 and closes on June 16. After the public issue, the equity capital will increase to Rs. 12.46 crores.

The company reported a turnover of Rs. 61.99 crore and a net profit of Rs. 1.47 crore in 2004-05 against Rs. 52.62 crore and Rs. 1.12 crore respectively in 2003-04.

Mr. Bengani said the company's products were also being exported to the U.K., Australia, Singapore and Sri Lanka, the share of exports in 2004-05 being Rs. 28.67 crore. After the proposed expansion, the company would increase its exports turnover.

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