Ess Dee plans overseas buy

Ess Dee Aluminium (EDAL), a pharmaceuticals packaging solutions provider promoted by Sudip Dutta, is planning to acquire an overseas packaging plant. 
 
The company has entered the capital market with an initial public offering of 68.1 lakh shares and a part of this is likely to be deployed for overseas acquisition. 
 
Chairman and Managing Director of EDAL Sudip Dutta said the company is looking for overseas acquisitions through strategic partnership or joint ventures. 
 
We will set aside a portion from the IPO proceeds for acquisitions. We are hoping to mobilise a decent amount, as the response to the IPO is really encouraging. It is already oversubscribed by 10 times,?he said. An official of EDAL said the company has earmarked close to Rs 30 crore for the acquisition. 
 
The company is hoping to raise close to Rs 157 crore through the IPO, which has a price band of Rs 200-225. 
 
Dutta said EDAL would invest Rs 115 crore in a state-of-the-art unit in Daman for manufacturing aluminium foil-based packaging products. 
 
According to Dutta, the group is planning to double the capacity from 9,100 tonne per year to 18,000 tonne through this new unit. EDAL currently operates two units in Daman and Goa. 
 
It has a wholly owned subsidiary called Flex Art Foil Private Ltd (FAFPL), which has four units in Daman, Maharashtra, Himachal Pradesh and Goa. 
 
EDAL deals in aluminium foils and PVC films, which are the basic packaging materials. FAFPL is doing value addition by making tailor-made packaging for pharma, FMCG and food businesses,?he added. 
 
According to Dutta, the group had a combined turnover of Rs 85 crore in 2005-06.