MEL targets 500 per cent jump in its net profit in two yrs

Kolkata, Jan 24(UNI) Manjushree Extrusions Limited, a leading manufacturer of speciality plastic packaging products, has targeted a 500 per cent jump in its net profit and more than 200 per cent increase in turnover in the next two years with the help of expanded capacity.

The company, which expects about 40 per cent rise in net profit at Rs four crore this fiscal from Rs 2.82 crore last year, has targeted a further 100 per cent increase next year with the turnover touching around Rs 125-crore mark.

" In 2009-10, when we will have about 95 per cent utilisation of our expanded capacity, the turnover will rise by 100 per cent and profit by 200 per cent," Managing Director Vimal Kedia today said.

Announcing that a fund of Rs 53.70 crore was being raised for the company's expansion and diversification project, Mr Kedia said while Rs 35.70 crore would be raised from Rights and public issue, the rest would be funded by the State Bank of India.

The company is going to increase the capacity of its two manufacturing units in Bangalore to 14,000 tons from the present 4,000 tons, while the diversification programme envisages manufacturing of pet preforms, a raw material for pet bottles.

Mr Kedia said the expansion project would be completed by April one this year.

Manujushree's products include injection /blow molded PET/PP and multilayer plastic containers which are being manufactured through Japanese and European technolgies.

UNI KDG KK RN1554