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Shree Rama Multi-Tech plans jt ventures abroad

Our Bureau

MUMBAI, Nov. 22

SHREE Rama Multi-Tech Ltd, the Ahmedabad-based manufacturer of plastic laminated tubes, plans to expand operations through joint ventures in China, Africa and the US.

``The company would prefer joint ventures to pure acquisitions and is looking at possibilities in the US, China, Africa and Europe, which should come through by next year,'' Mr Sharad Patel, Executive Director, Shree Rama Multi-Tech, told news persons he re.

Meanwhile, the company's Rs 306-crore expansion programme (outlined during its IPO) aimed at increasing the existing capacities and setting up an additional plant would be completed on schedule, said Mr Vikram Patel, Managing Director.

One production line comprising an ASIA machine from Switzerland with a capacity of 32 million tubes per annum is now running at full capacity at the Pondicherry plant.

``Another machine will become operational by tomorrow at another new site at Ambaliyara near Ahmedabad,'' Mr Vikram Patel said.

For its financial year ended September 30, 2000, the company has grossed revenues of Rs 205 crore (Rs 151 crore) with a net profit of Rs 45 crore (Rs 34 crore).

``Next year, we expect revenues to grow by 30 to 35 per cent with a profit of around Rs 52 crore,'' said Mr Bhupendra Patel, Senior, General Manager, Finance.

The company expects demand for plastic laminated tubes from the dental, cosmetic and pharmaceutical sectors to drive revenues next year. Specialty packaging products was another untapped area of growth for the company, said Mr Patel.

``We are also looking at increasing the company's export levels from the current 7 per cent of sales to 15 per cent by next year,'' he added.

Pic.: Mr Vikram Patel, CMD, Shree Rama Multi-tech Ltd, Mr Paresh Khandwala, stock-broker, and Mr Sharad Patel, Executive Director, Shree Rama Multi-Tech, at a press meet in Mumbai on Wednesday.

Picture by Paul Noronha