Objects of the issue:
- Setting up of a new manufacturing facility to manufacture new variant of Flexible Intermediate Bulk Containers (FIBC).
- Repayment/ Prepayment of certain secured and unsecured borrowings in full or part availed by the Company and the Subsidiary Company.
- Funding the working capital requirements of the Company.
- General corporate purposes.
New manufacturing facility set to widen the company’s product portfolio mix
The company aims to set up a new manufacturing facility for manufacturing Flexible Intermediate Bulk Containers (FIBC) with an annual installed capacity of 3,960 MTPA. The current facility of the company manufactures a diverse range of HDPE/PP Woven Sacks and FIBC products with a filling capacity of around 500 KGs per bag/sack. With the new manufacturing facility in place, the company intends to manufacture bags with filling capacities of around 2,500 KGs. This is in line with the expansion plans of the company that aims to cater to the growing demand of the customers and increase its revenue from operations.
Diversified customer base and product offerings bode well for risk mitigation
The company has a wide customer base and offers its services across multiple industries and geographies both at domestic and overseas locations. The company follows a B2B customer segment model, catering to packing requirements of varied industries including agro pesticides, basic drugs, cement, chemical, fertilizer, food products, textiles, ceramic and steel. Additionally, the company sells its products through commission agents domestically and through overseas representatives and merchant exporters globally. Thus, with this well-diversified model, Sah Polymers Ltd. has reduced its dependence on any one particular industry or location and protected itself against any market instability in the future.