- 18 Nov 2022
- ICICIdirect Research
MOLD-TEK PACKAGING RECEIVES LOA FROM GRASIM INDUSTRIES TO SUPPLY PACKING MATERIAL
MOLDTKPAC - 702 Change: -35.30 (-4.79 %)News:
In a regulatory exchange filing, Mold-Tek Packaging announced that it has received a letter of award from Grasim Industries - Birla Paints Division, for supply of packing material. For the same, the company will be setting up a co-located facility at Cheyyar near Chennai. The investment required for this facility is ~Rs 30 crore and will be operational by the end of CY24. The company has also proposed to set up food and FMCG IML container manufacturing facilities in Cheyyar to cater to the demand of these products and serve clients for packaging material in southern India
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In its Q2FY23 earnings call, Mold Tek announced that it would be acquiring 2 acres of land at Panipat to set up a new plant with an investment of Rs 30 crore to cater to the requirements of Aditya Birla Group and food, FMCG clients which would be ready by end of CY23. The current development is an additional capex plan. Paints segment is the largest contributor to Mold-Tek's topline (contributes ~53% to the company's topline). We believe this development will further help to improve the company's volume offtake and thereby, its revenue
Impact:
Positive