The Hindu Business Line : Vesuvius announces 10% special dividend

VESUVIUS India Ltd, which is all set to play an increasingly strategic role in the Vesuvius Group's business plans for Asia Pacific and West Asia, has announced a 10 per cent (Re 1 per share of the face value of Rs 10 each) special dividend on the occasion of the company's 10th anniversary celebrations.

This would be in addition to the 30 per cent dividend (Rs 3 per share of face value of Rs 10 each) that has been proposed for the year ended December 31, 2003.

Stating this at a press conference here on Tuesday, the Managing Director of Vesuvius India Ltd, Mr Biswadip Gupta, said the company's turnover at Rs 136.13 crore in 2003 marked a 27 per cent growth over the Rs 107.38 crore recorded during the year ended December 31, 2002. The net profit in 2003 stood at Rs 20.85 crore, up from the Rs 16.61 crore in 2002.

Mr Gupta said a top line and bottom line growth of 20-25 per cent was sustainable, especially as the demand for refractories from the steel sector, among others, was on the upswing. Besides steel, the company has decided to also focus on non-steel users in sectors such as glass, foundry, copper and petrochemicals. Already, 25 per cent of the company's revenue is accounted for by refractory sales to non-steel businesses.

He said the idea now was to facilitate a larger role for Vesuvius in the group's global market. Vesuvius India is also open to the idea of adding capacities by way of acquisitions whenever opportunities permit.

Mr Alan Ridley, Director of Vesuvius India and President (Asia Pacific Region) of the Vesuvius Group, said Asia and the Asia Pacific regions were crucial to Vesuvius' global business plans as the markets in the US and Europe had become "static." As such, the region could well be the recipient of investment from the group in the months ahead. A refractory manufacturing plant has been set up in China. As of now, there were no specific investment plans for India, he said, adding that the group was always on the look-out for opportunities in this regard.

Mr Ridley said the projected growth in steel production in India augured well for refractory manufacturers. There was great potential for Vesuvius India to export to China, South East Asia, Middle East and the Asia Pacific. In 2003, Vesuvius India's export earnings stood at Rs 11.3 crore, up from Rs 2.4 crore in 2002.