Kabra Extrusiontechnik implementing Major Expansion

Kabra Extrusiontechnik Ltd has announced that the Company is implementing major expansion.

Initiated in 2005-2006 with an estimated cost of Rs 120 million, the expansion is likely to be completed by December 2006. The company has already invested Rs 60 million in 2005-2006 in state-of-the-art plant and machinery. It will be investing the balance Rs 60 million in 2006-07 in latest machinery including high-precision CNC machines, which are being imported mainly from Europe. The company is also importing special purpose machinery for manufacturing bi-metallic screws. Such screws will be manufactured for the first time in India and the process technology will be available from the collaborators. The company is financing the expansion mainly from internal accruals. The company is long-term debt-free.

Commenting on the expansion, Mr S V Kabra, Chairman and Managing Director said "We are experiencing healthy growth in demand from Indian and overseas markets. Installation of new machinery will not only increase the oven capacity by 50% but also improve the quality of critical components like screws and barrels. It will also enhance our competitiveness."

Source : Equity Bulls

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