Taking Bold Steps Ahead

Engaged in the making of polymer compounds that find application in various industries such as wire rods, cables, packaging and footwear, Kolkata-based Kalpena Industries Limited is now embarking on an ambitious expansion plan, reports Huned Contractor

In India, the fiscal year 2011-12 was a year of challenges with fear of recession, volatility in exchange rates, and constant fluctuations in the prices of raw material. Overall, the Indian industry had to face tough competition from national and regional players resulting in the manufacturers facing a steep rise in the cost of production. Yet, Kolkata-based Kalpena Industries Limited sailed through without any major problems. "This," explains Narrindra Suranna, the company's chairman and managing director, "was primarily because our products find an application in the sectors of cable, packaging, and footwear, all of which did fairly well and therefore made a positive impact on the topline performance."

Kalpena Industries Limited (KIL) has, over the past three decades, attained the status of a respected polymer compounder in India. "During this time we have moved from a producer of commodity compounds like PVC Compounds to high-performance compounds like medium-voltage insulation and semi-conducting grades," Suranna states. This has also enabled it to escalate its capacity from an annual production of 3,000 tonnes to a level of 1,50,000-plus tonnes. "The group is now one of the largest manufactures of polymer compounds in India with an installed capacity 30,000 MT of PVC compounds; 60,000 MT of silane-based compounds; 12,000 MT of XLPE compound for CCV line; 36,000 MT of PE and PP filled compound; and 6,000 MT of semi-conductor compound for strippable and non-strippable applications. In addition to the above, KIL manufactures specialty compounds and master batches, each with capacities of 6,000 MT per annum. All these products conform to national and international standards," informs Rajesh Kumar Kothari, Whole-Time Director, KIL.

Some of the products that the company manufactures for the cable industry include grafted XLPE compounds for cable insulation, sheathing and semi-conductive (from 1.1 kV to 35 kV application) both for sioplas and CCV lines; PVC compounds for cable insulation and sheathing; zero halogen low smoke grades for insulation and sheathing, etc. In addition, products like colour master batches; UV; antioxidants; optical brightener; and mould release agent augment the product offerings.

Established in September 1985 by D C Suranna and now guided by Narrindra Suranna who has more than 25 years' experience in the plastic industry, KIL has among its major clients companies like Havells India, KEI Industries, Polycab Wires, PDIC Group, Saudi Cables, Energya Group Eygpt, Jeddah Cables, General Cables (New Zealand), Demes, Tumka Cables in Turkey, and many others. In the February 2012 edition of the e-journal 'Applied Market Information' published from UK, Kalpena Industries was named as 'Compounder of the Month'.

"We are now embarking on an ambitious project of expansion. In order to diversify our product concentration risk and take advantage of the in-house compounding knowledge, we are going to start a flexible packaging unit at Dankuni in West Bengal, complete with blown and extrusion film lines, printing, lamination, slitting, and pouching facilities, supported by ink making facilities in Bhasa, Kolkata. The total project cost is estimated at Rs 120 crore and is expected to generate net profit returns in excess of 10 per cent when fully operational," Suranna informs. Meanwhile, there are several new products in the pipeline, including cross-linkable variety of halogen-free flame retardant, engineering plastic products for automobile and appliance industries, as also products specifically meant for the solar energy sector. "Also, as part of our strategic expansion plan, we are in the process of commissioning a new production unit at Surangi, Silvassa, with capacity of handling 2,00,000 TPA of our products. Once the project is completed, the production capacity at Bhiwadi, Daman, and Silvassa will be shifted to the new unit. We are expecting full capacity utilisation between December 2013 and June 2014. The new unit will produce various grades of compounds, including XLPE, HFFR, filled PP for furniture and appliances, and white and black master batches as well as rigid and flexible PVC compound used for cable insulation," Kothari reveals.

Speaking about the cable industry in India and its impact on the company, Suranna says, "The Indian cable industry is highly fragmented with a large number of producers. The market for cables and wires is mainly dominated by the unorganised sector controlling about 70 per cent of the domestic demand. The buoyancy in real estate, power, chemical, hydrocarbons, refineries, etc. has spurred the demand for cable and wires over the past 2-3 years. During FY11, the Indian cable industry witnessed an overall growth of about 15 per cent. As such, KIL can look forward to accomplishing volume growth and consequently its market share in the near future."

(Kalpena Industries Limited, Kolkata. Tel: 033-22823744. Fax: 91-33-22823739. Email: kolkata@kalpena.co.in)