Kriti Industries (India) Ltd - Stock Valuation and Financial Performance

Kriti Industries, established in 1983 is a reputed manufacturer of plastic polymer piping systems, moulded plastic products and premium quality refined soyabean products with a loyal customer base both in India and internationally. The greater part of the products’ manufacturing is based in central India with a branch in the western region. The group, as in the year 2008, has an annual turnover of more than Rs 5 billion with exports constituting above 25% of the pie.

Kriti has cherished the trust of its customers by walking that extra mile to integrate modern technology in its production facilities and processes to deliver a high quality product each time. The company conducts its business ethically, honours commitments and is continually adopting new environment friendly initiatives.

The company’s initial step was the setting up of a single screw extruder imported from Battenfield Germany, for manufacturing rigid PVC pipes in a small shed, 32 km from Indore in Madhya Pradesh with a capital of Rs 0.2 million taken from MPFC in the year 1983.

The brand ‘Kasta’  of the company was a success and led to expanded capacities and a dealership network of over 100 dealers. Strategically leveraging its relationship with the farmers, in 1992, a 200 tonnes per day solvent extraction plant was established where the company became buyer of seeds from the farmers who were purchasing company’s rigid PVC Pipes. The same year the company went public with an initial issue of Rs 48.3 million at a premium double its share value.

In 1995 a new range of injection moulding products was added to the basket. The range of offering of the RPVC pipes increased steadily from diameter of 63 mm to 316 mm.

The company added a 50 tonne edible oil refinery in the year 1998, whose capacity was increased to 70 tonnes within two years. This earmarked the successful launch of the brand ‘Kriti Refined Edible Soya Oil’ and further expansion of the capacity to 120 tonnes. With the advent of the telecom revolution a new range of institutional customers were added for the supply of co-extruded internally lubricated HDPE telecom ducts for laying optical fiber cables. The company subsequently started manufacturing large diameter HDPE pipes of 450 mm diameter for potable water supplies & sewage disposal.

In 2001, the company received the ISO 9000 certifiation, was processing 15000 tonne of plastics annually and added a 2 tonne per day lecithin plant in the soya division.  The company was constantly expanding its plastics’ range and not only catered to customers in M P, Rajasthan, Gujarat, Maharashtra but also many leading institutional customers & government departments.

The year, 2004 was a landmark year when the company moved out of Madhya Pradesh to Ranjangaon, Pune and put up new state-of-the-art facilities for moulding for white goods & the automobile industry. In the subsequent year the company received a certificate for second highest sales of soya oil in India and also the ISO 22000 certification and many more opprtunities.

In 2007 Kriti became the pioneer in manufacturing and exporting Super HyPro Soyabean meal, value added soya flakes and speciality lecithin.

Today the company has a turnover of over Rs 5 billion and presence in over 15 states in India and exports in countries of western Europe and South East Asia. The company is working on development and continuous upgradation by focusing on research for supplying additional value to its offerings.

Different divisions of the company:

• Plastics Division   This division houses comprehensive extrusion and moulding facilities. The products are sold under the brand names of Kasta, Koresil and are used for agriculture, micro irrigation, construction, infrastructure and telecommunication purposes.  
• Soya Division   A state-of-the-art manufacturing setup which includes solvent extraction plants, vegetable oil refinery, lecithin plant, effluent treatment plant, fluidized bed boilers and an in-house tin and jar manufacturing facility. It uses best quality, Non GMO soyabean seeds with a high nutrient content to manufacture a premium quality product range.The range includes refined soyabean oil, superhypro meal, defatted soya flakes and lecithin used for human consumption, cattle feed, poultry, aquaculture, confectionary, dairy product, industrial applications and pharmaceutical preparations.  
• Engineering Plastics Division   It is an auto component manufacturing division, which produces moulded plastic components for automobiles. The customer list includes the leading automobile manufacturers of India.

Product range of the company includes:

Plastics

• Plain Pipes
• Selfit Pipes
• Selfit SWR Pipes 
• Ring-O-Socketed SWR Pipes

Fittings

• PLB HDPE Duct
• PLB Ribbed (speed) HDPE Duct
• PLB with pre-installed cable HDPE duct
• PLB with tracer HDPE duct
• PLB with pre-installed pulling rope
• HDPE Duct
• Fittings and accessories

Engineering Plastics

• Automotive
• White goods
• Furniture

Soya

• Refined Oil
• Textured Vegetable Protein
• Full Fat Soya Flour
• Lecithin

Achievements/ recognition:

Kriti is certified by BVQI, with accreditation from UKAS, Quality Management, BVQI (hokiing) S.A with ISO 9001:2000 & ISO 14001:2004.