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May 12, 2001
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Money > Business Headlines > Report May 12, 2001 |
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Graphite plans Rs 480 million spreadBS Bureau Graphite India, the Rs 2.60-billion electrode maker of the K K Bangur group, plans to expand production capacity as well as its power generation facility within 18 months, for an investment of Rs 480 million. The company plans to expand capacity by 10,000 tonne over its existing capacity of 20,000 tonne. Executive director A K Jain said the investment -- to be funded through internal accruals as well as borrowing from financial institutions -- would help the company grab a bigger pie in the international market. "Since the domestic steel industry -- the major consumer of the company's products -- is running through a bad patch, a better penetration into the international market is required for growth. Currently, our capacity utilisation stands at nearly 100 per cent, which leaves no option but expansion to increase exports," he explained. In 2000-01, Graphite India exported 15,000 tonne of electrodes (equivalent to 75 per cent of its total production) to nearly 30 counties across Europe, the US and Asia. In 1999-2000, exports were at 11,700 tonne (67 per cent of production). The expansion plan also includes setting up a 1.5 mw hydel power unit in Karnataka to help the company earn more revenue from sale of power units. In 2000-01, the company sold 18 million units to industrial consumers. The company recorded a 56.2 per cent growth in bottomline in 2000-01 at Rs 192 million over a 9.64 per cent rise in topline due to huge reduction in interest cost and other expenditure. It declared a 25 per cent dividend against the previous year's 15 per cent. Graphite India vice-president (corporate) S Chaudhary attributed the reduction in interests to "the company's efforts to bring down borrowing rates through rescheduling of loan and expiring high-cost borrowing." He said the company brought down the average interest from 15 per cent to 12 per cent last year. The company also intends to set up a 15 MW hydel power plant at Darjeeling for an investment of nearly Rs 600 million. Its application for setting up the power plant has been pending before the state government for the past two years. Powered by YOU MAY ALSO WANT TO READ:
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