Flexituff Ventures International Ltd Stock Analysis

Flexituff International, a polymer manufacturing company, incorporated as partnership firm was converted into public limited company on April 25, 2003. It is engaged in production of FIBC, Geo-Textile Fabric and Ground Cover, Reverse Printed BOPP Woven Bags, Special PP Bags including Leno Bags.

The company exports it products to around 30 countries across globe with major thrust in US and Europe. Recently, it manufactured and exported Trap Bags for AmeriGlobe USA. AmeriGlobe was contracted by City of Fargo to provide Trap bag Container Barrier System for flood protection in eight Fargo City locations. Flexituff International is recognized as one of the most reputed producers of FIBC in the world.

• Flexituff International, presently, manufactures products from its three fully integrated and self-sufficient manufacturing units. The two units are located in Pithampur (M.P.) and one in Kashipur (Uttrakhand). These manufacturing units have an installed capacity of 12,200 MT and 12,800 MT respectively.
• It has a recycling and reprocessing plant at Kandla which is used for recovering polypropylene and making various compounds of plastics.
• Additionally, a research and Development centre at Kashipur which is engaged in the research and development of various compounds for plastic products including engineering plastic, bio-degradable plastic and other new product developments. The Company has spent ` 245.47 million on research and development for the period April 1, 2007 till June 30, 2011.
• The company also owns a land admeasuring 5,72,347 sq. ft. at SEZ, Pithampur in Dhar district of M.P. The existing manufacturing facilities occupies approximately 295,500 square feet of land.
• It has marketing offices at Pithampur and Delhi. Pithampur office handles marketing of FIBCs. Delhi office handles marketing of BOPP, geo-textile products, special PP bags, compounding and polymers. Apart from this, it has its sales representatives at Mumbai, Hyderabad and Kolkata and marketing offices in UK and USA.

Subsidiary :

• Lakshmi Incorporated, U.S.A is engaged in manufacturing of reclosable extruded zipper profile which is used as a secondary closure for 5-50 kg bags.
• Flexiglobal (UK) Limited is engaged in distribution and marketing of FIBCs.

Product Portfolio:a) Flexible Intermediate Bulk Containers (FIBC)b) Geo-Textile Fabric and Ground Coversc) Reverse Printed BOPP Woven Bagsd) Special PP Bags and Leno Bags

Future projects:

• Polymer Compounding: The company already has installed machinery to produce 10,000 MT of various compounds at Kashipur. It can be broadly divided into two main categories viz.-Filler compounds (like Calcium, Elastomer) and-Modifier compounds (like UV/Colour Masterbatch, Bonding agents, Drip Masterbatch, etc.)
• Injection-moulded articles: It has presently commenced production for pallets, crates, boxes and other industrial / domestic injection moulded articles on trial basis. Also as part of the expansion programme at Kashipur, company is proposing to manufacture injection moulded articles for drip irrigation industry, with a thrust on production of drippers.

• The company intends to expand its manufacturing facilities at SEZ and DTA units at Pithampur also looks forward to set up Dripper Project at Kashipur. To meet the fund requirements of Rs 100 crore, company came up with an initial public offer (IPO) which was subscribed 1.14 times.