Raghav Productivity Enhancers Ltd commences commercial operations of new plant

Raghav Productivity Enhancers Ltd. ("RPEL") announces commencement of commercial operations at its new plant set-up under its wholly owned subsidiary Raghav Productivity Solutions Pvt. Ltd. (RPSPL). The new plant is situated adjoining its existing plant at Newai, ~ 60kms from Jaipur. Salient features of the new plant are as under:

- The new plant will manufacture higher quality Silica Ramming mass with the help of improved process enabled by latest technology plant and equipment. Over last 10 years, the company has continued to make significant investments in its in-house R&D set-up supported by affiliations with reputed institutions globally. As a result of which, we have been able to continuously improve both the processes and products, to benefit our customers.

- Over the last few months, the output of our improved process & technology was tested in the trials and its performance was found to be satisfactory. The company will be having a differentiated packaging and trade name for the enhanced variant along with differential higher pricing flowing from improvement in productivity of our customers.

- We envisage, that the premium product could also support the company in expanding its footprint in high value-added foundry & casting market in addition to the steel plants, both in domestic and export markets.

- Company's existing plant is running at near its optimum capacity utilisation for last 4 quarters whereby we expect ramp-up of company's overall scale in next few quarters, subject to technical approvals from its customers.

- The new plant was built with a total capex of Rs. 65 crores which was funded by a term loan of Rs. 10crs and balance was funded from its parent company, RPEL. The company continues to generate strong operating cash flows and consequently maintains a net debt free balance sheet despite this investment.

Managing Director of the company Rajesh Kabra commenting on the development said, "the new plant will strengthen our leadership, both on market side and cost side, cementing our position as a global leader in manufacturing of silica ramming mass. On behalf of all the Raghav family, I thank all our investors for appreciating our entrepreneurship and their continuous support."

Shares of Raghav Productivity Enhancers Ltd was last trading in BSE at Rs. 1045.70 as compared to the previous close of Rs. 1018.80. The total number of shares traded during the day was 17750 in over 1186 trades.

The stock hit an intraday high of Rs. 1095.00 and intraday low of 1024.95. The net turnover during the day was Rs. 18774475.00.

Source : Equity Bulls

Keywords

RaghavProductivityEnhancers INE912T01018 CommercialOperations NewPlant RaghavProductivitySolutions