Tulsi Extrusions Limited (TEL), PVC pipes and fittings manufacturer mainly for the irrigation, industrial, infrastructure and housing sector, is entering the capital market with a public issue of 57,00,000 equity shares of Rs 10 each for cash.. at a premium to be decided through the 100 per cent book building process. The price band for the issue has been fixed at Rs 80 to Rs 85. The issue will open on February 01 and close on February 05, 2008. The issue comprises a reservation of 1,00,000 equity shares and the net issue to the public would be of 56,00,000 shares. The issue would constitute 45.62 per cent of the fully diluted post issue paid-up capital of the company.

Tulsi Extrusion’s product offerings include PVC Pipes, PVC fabricated fittings, PVC casing and screen pipes, ASTM plumbing pipes, LLDPE pipes, HDPE pipes and elastomeric sealing pipes. These ranges of product are used in irrigation sector, industrial sector, infrastructure and housing sector. The Company has a manufacturing facility for these products at Jalgaon in Maharashtra.

Tulsi Extrusions Limited plans to expand its manufacturing facilities at Jalgaon by increasing the capacity of existing operations and further expansion of product range by venturing into manufacture of PVC injection moulded fittings, HDPE Sprinkler Systems, Inline Drip Irrigation System, LLDPE fittings for micro irrigation. The proposed expansion in PVC pipes would take the total installed capacity to 17,971 MT from the present of 10,483 MT. The total cost of the proposed expansion of plant facilities would be Rs 27.27 crore.

At present, TEL has branch offices at Mumbai, Raipur, Jaipur and Kolkata on leave and license agreement and C&F agent at Indore. The Company proposes to purchase offices at these locations at a cost of Rs 4.15 crore. TEL also plans to increase its customer base in the existing domestic markets and expand business to new geographic locations viz. Gujarat, Orissa, Assam, Delhi, interiors of Maharashtra, West Bengal etc.

Says Mr Pradip Mundhra, Managing Director of Tulsi Extrusions, “Adding a range of products through this expansion endeavour would allow our existing customers to source most of their product requirements from a single vendor and also enable us to expand our business from existing customers, as well as address a larger base of potential new customers.”

TEL’s business strategy is to capture market share by increasing its product range, installed capacities, manpower and distribution network. TEL has also strategised to set-up a captive wind power plant, which can lower its power expenses and improve its profitability.

As on November 30, 2007, the Company posted sales of Rs 36.77 crore with a PAT of Rs 4.72 crore. TEL registered sales of Rs 59.15 crore with a PAT of Rs 4.15 crore as on March 31, 2007.

The issue is lead managed by Almondz Global Securities Limited and the registrar to the issue is Intime Spectrum Registry Limited.

Sourced From: Prana Public Relations

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