Indian rigid plastic packaging products manufacturer Mold-Tek has announced plans to expand its operations overseas by setting up a plant in Dubai next fiscal, with an investment of about INR150m ($3m).
According to the company, which supplies packaging products to overseas markets, the Dubai plant will be its first manufacturing facility overseas.
Mold-Tek is set to tie up a deal with an ice-cream manufacturer for supplying the entire requirement of its packaging in the region.
The company decided to establish a plant in Dubai as the cost of transporting products from the country to Dubai will be nearly 23% of the cost of the product. With a similar capacity and investment, a new plant is also planned in north India.
Mold-Tek CMD Laxman Rao said the Dubai facility will have an initial capacity of 3,000t annually.
"We will take up work on these two projects only next fiscal, as we reach full capacity at our latest plant in Satara this year," Rao added.
The INR120m ($2m) Satara plant caters to the requirements of Asian Paint’s manufacturing facility in the region.
At present, Mold-Tek operates six plants in India and supplies packaging products for the paint, lubricant, food product and FMCG sectors.