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Fuji Silvertech plans ₹200-crore capex

Fuji Silvertech Concrete Pvt. Ltd., a JV between Japan’s Fuji Concrete Industry Co. Ltd., and India’s Silvertech, which manufactures precast concrete for the infra sector, said it is planning to invest ₹200 crore in the next two years to increase capacity to meet the growing demand for its products. The firm said it would commence production at its Aurangabad unit from January 2022 and with this, its installed capacity of 1,400 tonnes per day would double by next year end.

Now, plans are afoot to set up another manufacturing unit in Rajasthan or Haryana to cater to the demand from the north.

“We have already invested ₹300 crore since inception. We will be investing another ₹200 crore investment in two years to add capacity,” said Brijesh Shah, managing director, Fuji Silvertech Concrete.

“Most of the funds will come through the ECB route. The money will be invested in the new plant in the north and to increase capacity at the existing units,” he said.

Mr. Shah said there would be huge demand for precast products in the next few years given the government’s focus on infrastructure spendings.

“The organised precast concrete market in India is less than 1% the total market whereas in Japan, Germany, the U.S. it is upwards of 40%. So, there is huge scope for growth,” he added.

Giving an example, Mr. Shah said the Bullet Train project would require at least 30-40% precast materials estimated at ₹15,000 crore.

The company is currently manufacturing precast products for storm water, sewage, bridge and culvert, irrigation, traffic management, power and rail infrastructure.


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Printable version | Nov 29, 2021 1:43:53 AM | https://www.thehindu.com/business/fuji-silvertech-plans-200-crore-capex/article37131059.ece

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