The company said with starting of this plant bottom line should be up very highly & net profit may be up by 8-12 percent.
Shares of Jiya Eco Products gained 19 percent intraday on Wednesday after the company announced the set up of a new pellet plant.
The management announced that its subsidiary company Jiya Eco Gandhidham Private Limited is setting up new pellet plant in 3 acres field at Chudva, Gandhidham.
The set up of the new plant is in its final stage. This will be a huge success for renewable energy and the company is stepping up to the growth, the pellets and briquettes manufacturer said in its filing.
The company further said pellets, manufactured at this location, are proposed to be catered only to the retail market (namkeen, bakeries and fursaan, etc.) and would benefit the company in multiple ways & help widen the client base thereby de—risking its current business model and help improve the working capital profile of the company.
JEPL currently has a step—down subsidiary, Jiya Eco India (JEIL), which is engaged in the business of acquiring retail clientele by installation of burners at retail client sites in exchange for a 3-year contract.
"The pellets required for those clients would be supplied by JEPL at a pre-determined rate. JEIL targets installation of 1500 such burners at its retail sites till end of financial year 2019," the company said.This would ensure captive consumption of the pellets proposed to be manufactured from the Gandhidham plant, it added. "With starting of this plant bottom line should be up very highly & net profit may be up by 8-
Currently, it is trading 34.49 percent below its 52-week high and 152.44 percent above its 52-week low.At 12:20 hrs the shares were quoting at Rs 103.50, up Rs 9.60, or 10.22 percent.