Stock Review: KABRA EXTRUSIONTECHNIK

Kabra Extrusiontechnik is a domestic leader in extrusion machinery used for producing plastic pipes and packaging films. It has recently launched a new product to manufacture drip irrigation tube lines in collaboration with Drip Research Technology Services of the US. It is also planning to launch new high-speed multi-layer blown films plants by the end of FY11. The company has embarked on an investment plan of 85 crore, which will more than double its gross block by FY12. India's plastic consumption is likely to double within the next six years from 8 million tonne in 2009. Industry experts believe that investment of nearly $10 billion would be required in the plastic processing industry to create the necessary capacity. This investment spree in the plastic processing industry will be a key growth driver for Kabra Extrusion's machinery in future.