CRI Pumps has opened a plant at Hosur to make non-metallic plastic pipes to cater to the east and south Indian markets.
G. Soundararajan, Company Vice Chairman, told The Hindu the company had been transporting pipes from its plant in Gujarat to markets in south India leading to the freight cost working out to almost eight per cent. Hence, it was decided to have a manufacturing unit at Hosur.
The company had invested Rs.125 crore in pipe-making plants at Gujarat and Hosur.
It had expanded capacity at the Gujarat plant to 20,000 tonnes a year. The Hosur plant also had a similar capacity. “There is a plan to set up a facility in Orissa or West Bengal,” Mr. Soundararajan said.
Turnover from the pipe-making units in 2016-17 is expected to be Rs.150 crore, he said.
The Indian market size for uPVC and CPVC pipes is Rs.10,000 crore and CRI Pumps is looking at 10 per cent market share in the segment in the next five years.
CRI Pumps is expecting total turnover of Rs.1,500 crore this year with 20 per cent of it coming from exports.
