Manaksia Industries re-working business plans
Apart from strengthening capacities in India, Manaksia Industries is also firming up plans to set up manufacturing units in Nigeria and Sri Lanka.
Speaking to ET months after the division of Manaksia Group's family assets, Manaksia Industries Chairman & Managing Director Basant Kumar Agrawal said: “Post demerger, me, sons Navneet and Aditya along with our team of professionals chalked out plans, so that the businesses get better valuation in the market, as has been the case with many companies that have been carved up.“
Disclosing the strategy, Agrawal said that efforts are on to revive the company's Georgia operation, involving production of TMT bars before the end of the current financial year, 201617.
“We will be able to leverage the opportunity due to a variety of reasons, including power cost, and cost for sourcing scrap iron, which has become attractive. “ Agrawal said.
These advantages will pave way for a strong revival of the company's steel business. To restart production of 1,00,000 tonnes of TMT bars in the Georgia unit, the Kolkata-based family will have to invest about $ 5-6 million.The group had, over the past decade, invested close to $35 million into Georgia operations. Elaborating on the caps business, Agrawal said that the business is being strategically expanded to meet the needs of the company's new partners like Diageo, as well as the existing clientele. The Indian market for caps is growing at over 1012 % annually, largely due to renewed demands for packaging from the beverage and pharmaceutical industry.The biggest break in recent times for Manaksia Industries was is its strongly forged ties with Diageo. The company has entered into a strategic collaboration with Manaksia Industries to service its requirement across markets.
Apart from strengthening capacities in India, Manaksia Industries is also firming up plans to set up manufacturing units in Nigeria and Sri Lanka. The move will double its existing capacity from 1.5 million ROPP per month and 1.5 million crown caps per month and would help the company expand beyond borders to meet specific requirements other committed clients. Agrawal is confident the company will regain its past glory and more.“We created a formidable base in about 34 years of our existence. But the split in the family assets adversely impacted the company's growth. Now that we have resolved the issues, we are geared to regain our momentum and grow exponentially,“ he said.