Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us  
Stock Report

| More

Astral Poly Technik Limited to venture into plastic water storage tank business

Posted On: 2020-11-25 06:35:06 (Time Zone: Arizona, USA)

Astral Poly Technik Limited, pioneer in manufacturing of CPVC pipes & fittings announced its entry into the Plastic Storage Tank Business. The highlights of this business are as under:

- The Plastic Storage Water Tank business has an Opportunity of Rs. 5000 Cr. Plus in India and growing @ 8-10% in FY-18 which was earlier growing at 10-12% CAGR prior five years and 70% of which is controlled by Unorganized Players. (As per CRISIL report the size of Industry will be 8700 Cr by Fiscal 2022 growing at 13%-15% CAGR 2017-2022).

The Objective of Astral to enter into this Business:

1) The Size of Industry is Huge and growing at a fast run rate;

2) 70% of it is controlled by Unorganized Players which give huge space to Brand Like ASTRAL to grow fast in this category (Post GST/Demon Shift from Unorganized to Organize is getting Momentum and now COVID-19 is fueling it);

3) Many of ASTRAL dealers and distributors are already into business of water Tank;

4) ASTRAL is a very strong Brand across the country in Pipes & Adhesive Business and having sizeable Dealers and Distributors Network across the county, it will be a logical extension of brand ASTRAL among Its PAN INDIA network.

5) Astral has Multi location Plants across all the four zones of Country which has a strategic advantage of Logistic cost. As logistic is a very critical part for success of Water Tank business.

- As a part of the strategy to enter into the plastic water storage tank business, the Company intends to acquire certain assets from Shree Prabhu Petrochemicals Private Limited ("Shree Prabhu"), which is an established player in this market segment.

- The Company has entered into a framework agreement to identify the assets that intends to acquire from Shree Prabhu, its affiliates and certain other entities, where the aggregate considerations of all the assets together shall not exceed Rs 51,00,00,000. However, this may undergo change subject to further valuation exercise and other price adjustments as agreed between the parties. The Company, at present, intends to acquire certain land parcels along with building, plant and machinery, stock and inventory, and certain intangible assets such as the trademark 'Sarita', certain customer and dealer relationships along with the associated goodwill.

Acquiring of Assets of Shree Prabhu Petrochemicals Private Limited, its affiliated & others has following strategically advantages to ASTRAL:

(1) Shree Prabhu along with its affiliates and certain other entities together have sizeable Land with Appx Area of 3,62,000 Sqr. Ft.

(2) Land acquires from Shree Prabhu, its affiliates and other entities already has a Ready Building with Constructed Area of Appx. 92,200 Sqr Ft.

(3) Shree Prabhu has already presence in Tank Business for Many Years hence ASTRAL can take advantage of its expertise, existing ready facilities & its Brand "SARITA". and its existing appx. 550 dealers network.

(4) Due to ready capacity of Appx. 500 Mn. Liters Tanks - Roto and Blow Molding ASTRAL can enter into this business immediately without any delay. Sizes from 500 Liters tanks to 5,000 Liters tanks in Blow Molding Sizes from 200 Liters tanks to 10,000 Liters tanks in Roto Molding Sizes from 200 Liters tank to 1200 Liters in Loft Tank.

(5) Not only this location (Aurangabad- Maharastra) ideal for Tank Business but very well suitable for ASTRAL's existing business of CPVC/PVC piping solutions also. Shree Prabhu has already ready capacity of 4,500 MT of pipe (HDPE/ Drip Irrigation - Category in which Astral doesn't have presence) and further space is available for expansion of piping capacity in near future with minimum capex as all the utilities are readily available with the company.

(6) Shree Prabhu is the only company in India which has capacity up to 5,000 Ltr. water Tank in Blow Molding.

Commenting On the entering of the new business of Water Tank Mr. Sandeep Engineer, Chairman & Managing Director said, "This business is perfectly fitted to the synergy of ASTRAL to leverage Brand ASTRAL and its huge network of dealers and Distributors. It's going to be huge beneficial to all our stake holders such as Dealers / Distributors and Investors at large. Astral being a quality player in India We are confident that we will take this new category to a new height in near future with our Brand Strength and a Quality player for which ASTRAL is known in market".

Shares of ASTRAL POLY TECHNIK LTD. was last trading in BSE at Rs.1451 as compared to the previous close of Rs. 1407.6. The total number of shares traded during the day was 13811 in over 1905 trades.

The stock hit an intraday high of Rs. 1460 and intraday low of 1408.65. The net turnover during the day was Rs. 19884341.

Source: Equity Bulls

Click here to send ur comments or to

Other Headlines:

Ind-Ra upgrades Happiest Minds Technologies Limited's Long-Term Issuer Rating

Brickwork reaffirms Dhanlaxmi Bank's rating of Lower Tier-II bonds - Series XV

AGEL commissions 100 MW Gujarat Wind Power Project 5 months before schedule

Meera Industries Limited receives order of $180,000

Atul Auto launches its all new Nxt Gen, Atul RIK CNG Autorickshaw for Gujarat

NATCO receives final approval for Everolimus tablets for the US market

Blue Star declared winner of the prestigious 'Golden Peacock Award for Excellence in Corporate Governance' for 2020

Just Dial enters into an advertisement agreement for IPL

Fortis Hospital, Faridabad extends it services at Mathura, Launches Super Specialty OPD services

Fire accident at Radico Khaitan Ltd's Rampur plant

Adani Ports and SEZ Limited to allot 1 crore shares to Windy Lakeside Invesment Ltd

Hero MotoCorp Limited announces exclusive offer for women riders

Mayukh Dealtrade Ltd board to consider Stock Split of Equity Shares

CARE downgrades ratings of Srei Infrastructure Finance Limited to default category

Shish Industries Limited forms subsidiary

Dhani Services Limited board approves sponsored Level III ADR

Prakash Steelage Ltd board approves sale of shares of Tubacex Prakash India Pvt Ltd

Sayaji Hotels Management Ltd enters into management agreement for 7 properties

GRSE Lays Keel of 3rd Ship of Prestigious Project 17A Advanced Stealth Frigate

NMDC revises prices of iron ore w.e.f. 06-03-2021

Aarti Speciality Chemicals Limited receives an approval accorded under PLI Scheme for Pharmaceutical Sector

Mawana Sugars Limited approves investment of Rs. 10 crores in Siel Industrial Estate Ltd

TVS Motor Company to provide free COVID-19 vaccination to all employees and their immediate family members

Satyam Silk Mills Ltd board to consider rights issue on March 10, 2021

GRM Overseas Ltd board to consider interim dividend on March 10, 2021

Rushil Decor Limited starts commercial production of MDF board at new Vizag plant

IIFL Securities Ltd board to consider interim dividend on March 10, 2021

DCW Limited allots debentures to Kotak Special Situations Fund

M G George Muthoot, Chairman of Muthoot Finance Limited passes away

Acuite Ratings & Research Limited update on rating of Edelweiss Financial Services Limited

Kotak Mahindra Bank Appoints Dr Ashok Gulati as an Additional Independent Director on its Board

Xanadu Realty ties up with Poddar Housing Development Limited in a mega portfolio deal

Edelweiss Financial Services Limited updates on credit rating of proposed NCD issue

IndiGrid signs the largest power transmission deal with Sterlite Power AUM to leapfrog to over INR 200 Bn

Indian Bank to divest stake in JV, ASREC India Ltd

Dai-ichi Karkaria Limited updates on Kasarwadi Land Deal

AKI India Ltd approves construction of effluent treatment plant

Kotak Silk Launches Eduseries for Financial Independence of Women

Ind-Ra has assigned ratings to JSW Hydro Energy Ltd

Shriram EPC Limited board to consider issue of preference shares to lenders

Suncare Traders Limited to demerge investment division to Madhav Infra Projects Ltd

Astral Poly Technik Limited fixes March 19, 2021 as record date for bonus issue

Mazagon Dock Shipbuilders Limited gifts refrigerated truck

Sandhar Technologies Ltd announces incorporation of step down subsidiary

NMDC LTD. board to consider interim dividend on Mar 11, 2021

CRISIL revises outlook of Canara Bank's long-term debt instruments

Hero MotoCorp launches 4-day special service and exchange carnival

ICICI Lombard General Insurance Company Limited board approves interim dividend of Rs. 4

Sun Pharma arm to acquire stake in WRS Bioproducts Pty Ltd, Australia

Kirloskar Oil Engines Ltd declares interim dividend of Rs. 1.50 for FY21

Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2020