Emmbi R&D centre now recognised by DSIR ; stock up by 19 percent already

Emmbi Industries Limited is soaring on bourses today, trading at Rs. 82.25, up by almost 19 percent from yesterday's close. Department of Science and Industrial Research (DSIR) has issued a certificate of recognition for R & D arm of Emmbi Industries  - Emmbi Innovation Lab. The R & D arm Emmbi Innovation lab , a subsidiary of Emmbi Industries has been authorized by DSIR for the period 22/03/2016 to 31/3/2018 ( three years). 

DSIR is a part of Ministry of Science and Technology which was inculcated through a Presidential notification in the year 1985. It has a mandate to carry out activities related to indigenous technology promotions , development , utilisation and transfer. 

Emmbi Industries Limited, erstwhile Emmbi Polyarns Limited , is operational in the field of woven polyethylene and polypropylene product manufacturing . The company manufactures and sells  FIBC ( Flexible Intermediate Bulk Containers)  and Woven sacks and various Woven polymer based products like Container Liners , Protective Irrigation Systems, Canal Liners , Flexi tanks, Car Coyers etc.

Emmbi Industries' management declared that it will gain from its newly certified research Institution label and the company can profit from fiscal incentives occurring due to its status as a certified research Institute. According to the company management Emmbi Industries can now claim a weighted deduction of 200 percent of the total R & D expenditure subject to Income Tax department approvals. Emmbi Innovation Lab has filed for 6 product patents and 5 process patents for various products and processes over the past two years.

Emmbi Industries can expect to benefit in terms of improved pricing for its products , better acceptability of its products due to recognition by DSIR , and eventually improved margins and volumes. The stock is up by almost 20 percent over a period of 1 year, and has outperformed the markets. 52 week high for the stock is at 95.45.