>TEXMO PIPES & PRODUCTS LIMITED: IPO NOTE (SMC)

Company Profile
Texmo Pipes and Products Limited(TPPL) started its business as a partnership firm under the name Shree Mohit Industries on May 13, 1999. It was converted into a Public Limited Company under the name on July 3, 2008 and received the Certificate of commencement of business on July 28, 2008 under the promoters Mr.Sanjay Agarwal and his wife Ms.Rashmidevi Agarwal. Presently, TPPL is engaged into manufacturing of range of PVC and HDPE pipes. The manufacturing activities are carried out at its two Units viz. Unit 1 and Unit 2 in Burhanpur, Madhya Pradesh .

Strengths
■ Diversified product mix
TPPL's product offerings include suction & delivery hose pipe, rigid PVC pipes, elastomeric sealing ring fit PVC Pipe (Gasket Pipe), PVC casing and screen pipes, SWR Pipe, riser and plumbing pipe, conduit Pipe, Caping casing strips, column pipe, HDPE plain Pipe, sprinkler pipe, PLB HDPE cable duct and drip irrigation system. These products are used in irrigation, telecommunication, industrial, infrastructure and housing sector. Marketing and distribution network Direct and indirect sales channel are accessed for marketing of the products. Under direct sales, the marketing team approach directly to large end users whereas under indirect sales channel, it has dealers for marketing of its products. Presently, its array of dealers includes 169 exclusive dealers covering 6 states viz.Madhya Pradesh, Maharashtra, Rajasthan, Uttar Pradesh, Andhra Pradesh and Gujarat.

■ Accredited quality
TPPL is permitted by “The Bureau of Indian Standard” to use the standard mark i.e. 'ISI' vide licenses IS 4985/2000 for PVC pipes for potable water supplies, IS12818 for ribbed screen casing and plain casing pipes for bore / tubewell and IS9537 (part 3) for conduits of electric installation. In the year 2009, The Bureau of Indian Standard permitted it to use the standard mark IS: 13592: 1992 for PVC pipes for inside and outside buildings including vebtilation and rain water system.

Business Strategy
■ Expansion of manufacturing capacities
The company started its operations in the financial year 1999-2000 with manufacturing of PVC pipes with total installed capacity of 2928 MTPA and the present installed capacity is 12211 and 12883MTPA for PVC pipes and 8095 and 2928 MTPA for HDPE pipes at its Unit 1 and Unit 2 respectively.The total installed capacity after the proposed expansion would be 41674 MTPA for PVC pipes and 11023 MTPA for HDPE pipes.
Diversification of business operations TPPL proposes to diversify its business operations by manufacturing woven sacks and injection mouldings. Manufacturing of CVPC pipes, Drip Inline and DWC pipes is also under the proposal plan of expansion, by which the company would be in a position to cater to customers in macro-irrigation sector, sprinkler irrigation, lift irrigation and construction sector.

■ Expand customer base with increase geographical reach
It plans to increase its customer base in the existing domestic markets by enhancing customer satisfaction and by timely delivery of orders. The company also plans to expand its business to new geographic locations viz. Southern India, Bihar, Jharkhand, West Bengal etc. with the help of efficient marketing team.

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