 "Mallcom India targets Rs 1,000 cr revenue in next five years: Official")
Industrial protective equipment manufacturer Mallcom India Ltd is aiming at a three-fold growth in revenue to Rs 1,000 crore over the next five years as it is hopeful of securing orders from both domestic and overseas markets, a top company official said on Friday.
Countries across the world are looking for a 'China plus one' strategy to source industrial safety and personal protective equipment even though a sluggish demand for such products is witnessed in the short term due to geopolitical tension, he said.
"The (Russia-Ukraine) war, high inflation, and talks on a possible recession in the US and the European Union countries resulted in a sluggish demand situation. But, our recovery surpassed pre-COVID levels.
The 'China plus one' strategy by the major sourcing nations is under progress and India is emerging as an important sourcing destination, Mallcom India Managing Director Ajay Kumar Mall told PTI in an interview.
'China plus one' strategy refers to a policy of major countries which are seeking to diversify the sourcing base across the world to reduce over dependence on one nation.
"A lot of groundwork needs to be done for such a shift to take effect. It will take two to three years. China accounts for 70 per cent of the USD 62 billion global industrial PPE market, while India's share is a mere seven per cent. There is no doubt that a shift of orders under the 'China plus one' policy is going to take place and India will benefit from it," Mall said.
The PPE maker is expecting to surpass Rs 500-crore revenue in the next two and three years and Rs 1,000 crore by 2028, he said.
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The company registered Rs 370 crore revenue in the 2021-22 fiscal.
Mallcom has already taken steps to create infrastructure for capacity building in a big way.
A greenfield project is underway with a capital expenditure of Rs 50 crore on an eight-acre plot at Chandipur, around 20 km from the Bantala Leather Complex on the outskirts of Kolkata.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)