Punjab-based packaging firm Bharat Box Factory Ltd is in talks with a UK-based fund for raising Rs 60 crore through venture capital route to fund its capacity expansion programme.
“We are holding talks with a UK-based fund in order to raise money for funding our expansion project,” Bharat Box Factory Director (Finance) Sumeet Jain told PTI here.
Refusing to divulge the name of the fund and the quantum of stake that would be divested, he said “within next twenty days, the deal will be finalised.”
Under the capacity expansion project, which is aimed at consolidating its position in the market, the company plans to invest Rs 30-40 crore to double its capacity in the next 7-8 months.
“We plan to add more packaging lines comprising pre press and post press with this investment, thereby, raising the production capacity from 35,000 tonne to 70,000 tonne per annum,” Jain said, adding that the company is also importing new machines from Germany for its packaging segment.
Bharat Box expects to touch the mark of Rs 450 crore turnover by the end of this financial year.
Bullish about the growth of packaging industry, Jain expects the sector to grow over 20 per cent in the future.
“Reason being the focus of Indian government towards output and proper marketing of agriculture produce which will give big push to the packaging requirement,” he said.
Bharat Box, currently manufactures packaging facilities to companies like Moser Baer India, Wockhardt, Oriflame, MDH Spices and Glaxo Smithkline among others.
Besides packaging, the company makes plastic products which are exported to countries like Yemen, Canada, the UK, Sri Lanka, South Africa, Tanzania and Russia.
Source: Economic Times