Nilkamal Limited
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BSE Code:
523385
NSE Code:
NILKAMAL
Business Profile
Business Profile
Nilkamal Plastics (NPL) is one of the fastest growing companies in the molded plastics industry in India. The company manufactures products across five segments - furniture, crates, household goods, pallets and custom mouldings. Its diverse portfolio insulates the company from the demand fluctuations in the end use sectors. NPL started with manufacturing plastic crates for milk dairies spread all over the country. Later it penetrated other industries like automobiles, bottling, brewing, engineering, electrical, electronics, food processing, pharmaceuticals and textiles.
It enjoys a market leadership position in the crates and furniture product lines. NPL supplies plastic crates to soft drink majors, Pepsi and Coca-Cola, and has a market share of 18 per cent in plastic moulded furniture. Of the total business, plastic moulded furniture contributes 65 per cent. The company has 4 manufacturing units in India. It also has a 76% stake in Nilkamal Eswaran Plastics Ltd (Sri Lanka), a similar manufacturing subsidiary company that was incorporated in FY99. NPL has a marketing network of more than 200 distributors and 3500 retailers. Its strength is its strategically located manufacturing locations, which help to reduce costs substantially.
In FY99 its net profit grew an impressive 73%, with higher sales along with an effective cost management policy.
Recent Developments
The company is now concentrating on introducing a new range of furniture. With the launch of new furniture, the company has set a growth target of 35 to 40 per cent this fiscal. The company is launching plastic chairs and sofas shortly.
Future Plans
NPL plans to launch new products like plastic chair sofas and TV trolleys in FY2000. Increasing polymer prices can have an adverse impact on the company�s operations. It will enhance its facilities at Silvassa and Sri Lanka (by 1000tpa). On the anvil, is a new factory in Calcutta (2700 tpa) and a furniture production line at the Noida factory. It will also concentrate on exports and rural markets and add 1500 retailers to its network.