Dhunseri Ventures to shift new phases of plastic film plant to north
Informist, Wednesday, Sep 6, 2023
--Dhunseri Ventures head: May shift out plastic film plant new phases
--Dhunseri Ventures: May shift Bengal unit new phases as demand weak
--Dhunseri Ventures head: Eyeing north India for plastic film plant
--Dhunseri Ventures head: State sops key to set up plastic film plant
--Dhunseri Ventures head: To finalise site for new plant in couple mos
By Avishek Rakshit
KOLKATA – City-headquartered Dhunseri Ventures Ltd is in talks with states in north India to set up a mega polyethylene sheet plant, Promoter and Chairman C.K. Dhanuka told Informist. This facility was earlier proposed to be a part of the company's expansion plan for its under-construction plant in West Bengal.
Two years ago, Dhunseri Ventures, through its wholly-owned subsidiary, Dhunseri Poly Films Pvt Ltd, had conceived the plan to construct a 1.6-mln-tn polyethylene sheet plant in the state in three phases at a total investment of 12.5 bln rupees.
Construction of the first phase began soon and Dhunseri Ventures invested 1.7 bln rupees in the plant through internal accruals, while the rest was raised through loans, a major part of which was guaranteed by Dhunseri Ventures.
Dhunseri originally planned to construct the second and third phases in the same plant in West Bengal after the first phase got commissioned. However, it had to change tracks as the demand was not seen viable.
"The market demand here (east India) is not what we had expected. And thus, we have decided to relocate the planned phase-two of the project to some other state in northern India where there is demand for flexible plastic films," Dhanuka said.
The company is in talks with north Indian states regarding the incentives they could offer to set up the plant. "At the moment, I cannot say where the new plant will be, and can only say after a couple of months," Dhanuka said. "But incentives offered by the states is a consideration for setting up the plant."
Dhunseri had planned to build its plant in West Bengal across 38 acres in three phases. The first phase is being constructed at an investment of 4.5 bln rupees, and is set for commissioning in the next couple of months. The next two phases were to entail an investment of around 8 bln rupees in the same facility over the next three years.
"It is the expansion phase of the project, the second and third lines, which is getting relocated. There will be only one line in the West Bengal plant," Dhanuka said. "Thus, we will need a new plant in some other north Indian state to come up with the planned phase two of the polyethylene sheet project."
The upcoming first phase will have a production capacity of 45,000 tn of polyethylene sheets. The second and third lines will account for the bulk of the planned polyethylene sheet plant.
At the time of planning for the West Bengal plant, Dhunseri's projection was to cater to the entire demand for plastic films in the state, then pegged at around 40,000 tn per annum. The company was also planning to explore opportunities for export to Europe and Africa.
Dhunseri's projected turnover from this business was initially pegged at around 15 bln rupees per annum from the domestic market and another 4 bln rupees from exports by 2026. This projection could now be revised depending on the demand for plastic films used in the packaging industry.
Part of the Dhunseri Group, which has diversified interests in several business segments, Dhunseri Ventures is primarily engaged in trading, polyester and plastic film making, confectionery, and other businesses. At 1212 IST, shares of Dhunseri Ventures traded nearly 1% lower at 268.60 rupees on the National Stock Exchange. End
