United Drilling Tools added 2.92% to Rs 315 after the company announced its plans to set up a new manufacturing plant in Gujarat, near Mundra Port.
In an exchange filing made post market hours on Monday (18 January 2021), the company said that it had commenced the acquisition of land and building for setting up a new manufacturing plant in Gujarat, near Mundra Port. The manufacturing plant is spread over 35 acres with an initial capital outlay of Rs 15 crore and proposed to be entirely funded through internal accruals.
The unit would be developing latest designed products such as casing pipe with connector assembly segment further widening the existing product portfolio and in addition to this enhance the company’s manufacturing capacity by the implementation of latest production technologies making this a state-of-the-art unit.
Commenting on this development, Pramod Kumar Gupta, chairman & managing director, UDTL, said: This comes in line with our strategy of growing our domestic market share and further allow us to grow internationally, we expect 50-70% incremental revenues from this development in the coming 2 years, further to this, UDTL strongly believes in inclusive growth by generating employment opportunities in the region.
Dr Kanal Gupta, the whole-time director, UDTL, commented: Whilst this facility will be initially manufacturing the latest designed casing pipe and connector assembly, it will also serve as warehousing and cross-docking location, we shall further invest in this facility down the line to strengthen and sustain our competitive edge in line with UDTL’s vision of being a global player, also this new location will allow us to better align our supply chain management in a rapidly changing business landscape.
United Drilling Tools is a worldwide leader in connector technology and also a leading manufacturer of wireline & well service equipment, gas lift equipment’s, downhole tools and large OD casing pipe and connector.
The company’s net profit fell 31.4% to Rs 9.15 crore on a 23.5% rise in net sales to Rs 36.41 crore in Q2 FY21 over Q2 FY20.