Chemplast Sanmar acquires "Truebore" pipes manufacturer

Chemplast Sanmar Ltd has announced that in pursuit of its forward integration strategy, the Company has acquired the PVC pipes businesses of Polytrusions Pvt Ltd and Vinplex Pvt Ltd. The manufacturing facilities located near Chennai have a capacity to produce around 25000 tonnes per annum of a wide variety of pipes such as Pressure pipes, Casing and Screen pipes, SWR pipes, Plumbing pipes and Conduits. The products of Polytrusion and Vinplex are well-known in the market for high quality under the brand name "Truebore".

The Rs 650 crore Company is engaged in the manufacture of PVC resins, Caustic Soda, Chlorinated Solvents, Refrigerant Gases and Silicon Wafers. These facilities are located at Mettur and Karaikal and have a high level of backward integration. The company is setting up a green field PVC project to produce 170,000 tonnes per annum Suspension PVC. Besides this, the company is also implementing several projects at its manufacturing complexes at Mettur Dam and Karaikal, to enhance top line and rationalize costs. To maintain its reputation as a socially and environmentally conscious corporate citizen, the Company is continuously making large investments in environment protection measures, and is working towards implementing zero discharge status at all its facilities early.

The Company was a pioneer in the PVC pipes business, and was among the first to introduce them in India way back in the 60’s. It had exited this business in the mid - 80´s for strategic reasons, but with this acquisition, and subsequent investments, plans to establish itself as one of the major manufacturers in a few years.

Source : Equity Bulls

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