Flexituff

active

Flexituff International Limited (“FIL” or the “company”) is a packaging products and technical textiles company. The company’s packaging products are mainly Flexible Intermediate Bulk Containers (FIBCs) (or “Bulk Bags”) and bi-axially oriented polypropylene (BOPP) bags. Also, it has recently expanded into the geo-textiles business which caters to infrastructure projects. FIL currently has an installed capacity of 33,400 metric tons per annum (MTPA) for FIBCs, reverse printed BOPP and small Polypropylene (PP) bags capacity of 14,400 MTPA, geo-textile production capacity of 7,600 MTPA and a polymer and injection molded products capacity of 14,000MTPA. Two of the company’s main manufacturing facilities are located near Indore in Madhya Pradesh one of which is in the Pithampur Special Economic Zone (SEZ) (the “SEZ facility”) and the other in the Pithampur Industrial Area (Domestic Tariff Area facility or “DTA facility”). The third manufacturing facility is located in Kashipur in Uttarakhand (“Kashipur facility”). The SEZ facility is used for production of FIBCs mainly for export, whereas the DTA facility produces FIBCs as well as small bags. The Kashipur facility produces reverse printed BOPP bags, geotextile products, plastic compounds (sold for use in production of specialty plastics e.g., engineering plastics) and molded engineering components. Also, FIL is in the process of expansion of the Kashipur facility to produce drippers (used in drip irrigation). The Research & Development (R&D) center and ink production (for in-house printing) are also located in the same facility.In addition to these three main facilities, FIL has a small stitching facility (with 35 workers) in Barwah, near Indore and has a wholly owned subsidiary based in the United Kingdom, Flexiglobal (UK) Ltd (employing 9 people). Flexiglobal (UK) Ltd. is involved in sales and distribution with an office and a warehouse in Doncaster in the north-east of England. The main raw material for the all operations is polypropylene (PP). The operations at SEZ and DTA facilities include extrusion, tape manufacturing, weaving and stitching. In addition to these operations, the Kashipur facility has stitching and reverse printing (for BOPP bags, melt blown polyethylene film extrusion, ink/color preparation, plastics compounding, injection molding (for engineering plastics) and polyester carding and needling line for nonwoven fabrics. The new dripper manufacturing will involve injection molding.The proposed investment involves equity and quasi-equity financing to FIL for setting up a new drip irrigation equipment (drippers) manufacturing facility and expanding the geotextile fabric manufacturing at its Kashipur facility. In addition, the company is expanding its FIBCs manufacturing capacity at the SEZ facility through routine capital expenditure and setting up satellite facilities (mainly for FIBC finishing operations) in Brazil and South Africa (“the Project”).