Page 10 - CV April-May 2019 issue

FINOLEX INDUSTRIES EYE 1,000 players, but only a third of it is in the
"Currently only 30 per cent of our revenue
$1-BILLION SALES BY 2020, organised segment with an annual value of
comes from this, which I want to increase to around Rs 10,000 crore, says Chhabria
TO DOUBLE CAPACITY 50 per cent over the next three years. Agri adding that herein lies the biggest challenge

fighting these unorganised players.
Among the organised players, Finolex is the
largest with 20 per cent market share.

BIDS INVITED FOR RS 20,000
CRORE BULLET TRAIN
PROJECT

Sources said the project would cost about Rs
20,000 crore and the successful bidder will
have to complete the work in 44 months.

The National High Speed Rail Corporation
The Pune-based company currently nets pipes & fittings get us 70 per cent of revenue
(NHRSCL) has invited bids for 237 km out of
around 70 per cent of its revenue from farm- now," he says.
508 km-long Ahmedabad-Mumbai bullet train
oriented pipes & fittings, but expects to
Chhabria says a good portion of the project, which is the biggest ever contract for
increase the non-agri revenue share to 50%.
incremental sales from the non-agri side will civil construction in India. Sources said the
Finolex Industries the largest PVC pipes &
come from their recent tie-up with the project would cost about Rs 20,000 crore
fittings manufacturer in the farm sector
Cleveland, US-based Lubrizol Corporation and the successful bidder will have to
enjoying 70 per cent of the organised market
under which Finolex will manufacture and complete the work in 44 months.
pie, has set a USD 1 billion revenue target
sell the FlowGuard branded CPVC pipes and
and to double its capacity by 2020.
fittings in the domestic market. Industry sources said only a handful of Indian
infrastructure majors such as L&T and
The Pune-based company currently nets The companies inked the tie-up in February
AFCON can bid for such a huge project and
around 70 per cent of its revenue from farm- this year. The CPVC pipes & fittings can
they would also need to have joint venture
oriented pipes & fittings, but expects to service the hot and cold water plumbing
with Japanese companies such as Hitachi
increase the non-agri revenue share to 50 markets and cater to the building and
Construction and Mitsubishi Construction.
per cent from 30 per cent now as it shifts construction industry.
They added Japanese firms can also
focus on the residential and commercial
Lubrizol is the inventor and largest independently bid for the works considering
properties segments, given the government
manufacturer of CPVC (chlorinated polyvinyl their vast experience.
thrust on housing, says its executive
chloride resins and compounds) worldwide.
chairman Prakash P Chhabria.
As per the agreement with the Japanese
The Finolex Group was started by Prakash
For the year to March 2017, the debt-free Chhabria's father, late Pralhad Chhabria, in funding agency, JICA, only Indian and
Finolex had reported Rs 2,987.6 crore 1956 after coming from Pakistan following Japanese construction firms are qualified to
revenue, up 5 per cent over fiscal 2016, partition, with just Rs 10 in his pocket. put their bids.
while its profit jumped over 38 per cent to Rs
352.2 crore on an Ebidta growth of over 39 Finolex is the only player with full backward The companies will have to submit their bids
per cent at Rs 563 crore. integration, with three plants in Pune and with Rs 200 crore security amount, the
Ratnagiri in Maharashtra and Masar in tender document published on Friday said.
"We're increasing our focus on the non-agri Gujarat, which together produce 2.72 lakh “Usually, the bid security amount is about 1%
segment, especially housing, that's a large tonne PVC resins PVC resins and 2.9 lakh of the project cost. Hence, the works would
market given the government focus on tonne of pipes & fittings per annum. By 2020 involve around Rs 20,000 crore investment
housing to meet our USD 1 billion sales both these capacities will double. or expenditure,” said a government official,
target by 2020. I see a big opportunity in who has been involved in rolling out of mega
non-agri segment," Chhabria told in an The domestic PVC pipes & fittings market is infrastructure projects.
interview at his Pune headquarters recently. around Rs 30,000 crore with as many as

8 / CONSTRUCTION VISION / May June 2019