Supreme Industries received LoI from IOC for supplying composite LPG cylindersTIMETECHNO - 88 Change: -3.05 (-3.37 %)
News: Time Technoplast has received new orders worth Rs.180 crore to deliver 7.6 lakh LGP cylinders to Indian Oil Corporation for 12 months.
Views: New order of LPG cylinders from domestic OMCs was long awaited. The company has annual capacity of 1.4 mn units to manufacture LPG cylinder and has clocked revenues of Rs.166 crore during FY21. The current order size is ~50% of the company’s total LPG capacity and higher than the company’s single year sales. The company plans to add additional one million cylinder manufacturing capacity with a capital outlay of ~Rs.90 crore in the next 12-15 months. We believe there is immense potential in this category as the addressable market size of LPG Cylinder is ~28 crore units in India and Time Technoplast is the market leader in the same category.