The city-based PPE maker Mallcom (India) Ltd is setting up one of its largest units which will allow the company to focus on the domestic market by foraying into niche PPE sectors and help reduce its dependence on export earnings, company official said.
The Bombay Stock Exchange listed company earned total revenue of Rs 320 crore in FY ''21, almost
two-third of which is from exports, he said..
"So far, we have not seen demand from the government for protective gear for the third wave," Mallcom (India) managing director Ajay Kumar Mall told PTI.
The company which earned revenue of Rs 7 crore to Rs 8 crore by supplying medical COVID PPEs is a major industrial protective gear maker.
"We are installing a major protective gears plant at Ghatakpukur, in North 24 Parganas district on Basanti highway at a capex of Rs 50 crore. This will help consolidate our existing12 manufacturing facilities and foray into niche products," Mall said.
The company intends to manufacture import substitute products in the PPE sector. The manufacturing units are spread in Kolkata, Haridwar and Ahmedabad.
Despite exports appearing promising with shift of business from China, the new RoDTEP scheme rates meant to neutralise local taxes by refunds from government are meagre. Compared to previous MEIS scheme the benefits are just one fourth, the official said.
PPE includes both industrial safety gear such as gloves, helmet, suits, shoes as well as medical gear like masks and disposable protective covers.
Mallcom is planning to register at least 15 per cent growth in revenue in the current fiscal, its official added. PTI BSM KK