Financial Daily from THE HINDU group of publications
Thursday, Dec 15, 2005
Financial Daily from THE HINDU group of publications Thursday, Dec 15, 2005 |
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Corporate
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New Projects Riddhi Siddhi Gluco to expand capacity Our Bureau
Mumbai , Dec. 14 RIDDHI Siddhi Gluco Biols Ltd, the country's largest starch and starch derivatives manufacturer, said it is enhancing its maize-crushing capacity to around 2,85,000 tonnes a year from 1,65,000 tonnes. This is estimated to cost Rs 30 crore and would be funded partly through the proposed preferential allotment, term borrowings from banks and internal accruals. The capacity expansion is to be completed by January 2006. The shareholders at the EGM held on November 12 had approved the company's proposal to issue 10 lakh shares to the promoter group and an investor group, at Rs 115 a share. The funds so raised would be deployed in the capital expenditure plan, repayment of loans and additional working capital requirement. "The ongoing capex plan will help us consolidate position as market leader in the starch segment. Also, our major clients are in massive growth phase and have committed long-term orders to us. The biopolymer division at Pondicherry, recently acquired from HLL, has stabilised operations and the management is considering capital expenditure in this division as well. Apart from topline impact expected, the capex plan would also lead to healthy profitability," Mr Ganpatraj L. Chowdhary, Managing Director, Riddhi Siddhi, said in a press release.
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