Ludhiana, August 29, 2012:: Govind Rubber Ltd. (GRL) has shown robust growth on sales, which has increased by 35% for the quarter ended on 30th June 2012, as compared to the corresponding period last year. The profitability for the quarter Q1 has jumped by whooping 248% over last year.
For the quarter ended on 30th June 2012, net sales of the company was reported to Rs.7823 lakhs, which was Rs.5768 lakhs for the same period, last year. Profit after tax (PAT) was shot up to Rs.101 lakhs, which was Rs. 29 lakhs for the corresponding period last year.
This is mainly due to better product mix, which company could fetch in this quarter. The company expects better profitability in the quarters to come due to softening of rubber prices, which will be a major contributing factor coupled with other avenues explored by the company, said Vinod Poddar, Chairman and Managing Director of the company.
GRL has four manufacturing plants. At Ludhiana plant, the company is expanding its range of 2 and 3 wheelers tyres & tubes by launching new patterns & designs to beat world competition. The company is further exploring avenues for exports of these tyres into African Countries. After this expansion, auto tyre business as a standalone will fetch a turnover of Rs. 100 crore.
At Alwar- Rajasthan plant of the company, which has been recently acquired, the company proposes to invest Rs. 120 crore for the first phase of modernization & expansion to reach a capacity of 100 tons per day.
GRL will set up a Greenfield project at Dahej in Gujarat with a capital outlay of Rs. 1,000 crore, thereby creating a production capacity of 225 tons specialty tyres per day. The land has been recently allotted to the company.
Govind Rubber Limited has globally expanded its horizons and entered into a joint venture for manufacturing highly specialized rubber by setting up a plant at Busan, South Korea. GRL aims to sell its products within Korea, Indonesia, Vietnam, China & India. GRL envisages turn over of Rs. 150 crore in 2 years time from this project.
GRL has set up a wholly owned subsidiary, “GRL B.V.” at Holland in Netherlands. It has also set up an office and warehousing making the company a “Tire Hub” in Holland. GRL will market its full range of tires & tubes in Europe through this network.