Kaka Industries' Gujarat Plant Fully Operational, Eyes Revenue Doubling
Full Commissioning of Gujarat Plant
Kaka Industries Limited, a manufacturer and supplier of PVC-based products, has announced the full commissioning of its state-of-the-art manufacturing plant in Village Lasundra, Tehsil Kathlal, District Kheda, Gujarat. The company successfully overcame power supply constraints that had limited the plant's operations for over six months.
Plant Capacity and Output
The facility, which is around 800,000 square feet, has a current capacity utilization of 40,000 metric tons per annum (MTPA). The company forecasts that the plant’s output will exceed its current capacity utilization of 18,000 MTPA by over 120% over the next 2 to 3 years. With the resolution of the power supply constraints, the plant can achieve almost four times its current output.
Power Supply Resolution
Kaka Industries Limited had been struggling with consistent power supply for the past six months. However, effective from January 2, 2025, the company has switched to a continuous power supply from Madhya Gujarat Vij Company Limited. The power line infrastructure has also been completed. This resolution is expected to enable the company to pursue new business opportunities.
Expected Revenue Growth
Kaka Industries Limited's Chief Financial Officer, CA Chintan Bodar, stated that the company expects its turnover to at least double by the close of FY 2027 due to the full commissioning of the Gujarat plant and the uninterrupted power supply. The company has moved all equipment from other ancillary plants to this new facility. They expect to reach utilization levels of 40,000 MTPA eventually versus the current 18,000 MTPA. Therefore, over the next two years, the company anticipates doubling its revenue, with the possibility of reaching 120% utilization levels in the next 2-3 years. This facility is expected to improve economies of scale, reduce operational costs, and increase the company's margins.
Market Expansion and Company Profile
With the enhanced plant capacity, Kaka Industries Limited is poised to boost its market share and solidify its leadership role in the polymer industry. The company also aims to benefit from its strong branding, marketing, and sales support with an extensive dealer and customer base. Kaka Industries Limited is committed to providing quality products while being innovative and responsible, aiming to serve various industries with a wide selection of polymer goods and offering solutions to address changing market needs.
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