The Hindu Business Line : Kanoria Chem to hike power production

He was addressing a press conference recently after the company's annual general meeting. "We need more sources of coal because we would like to increase our power business," he said.

The company is currently expanding its production unit at a chemical complex at Renukoot in Uttar Pradesh to 50 MW from 25 MW. The capital cost is Rs 87 crore and it would be commissioned in October this year. Total power requirement of the company's Renukoot plant is 40 MW. Excess power would be sold to Power Trading Company Ltd. Thermax is implementing the project on a turnkey basis.

KCIL is setting up a 110 tonnes per day Greenfield chlor-alkali plant. The cost of it would be Rs 93 crore and the total cost of the two projects is Rs 180 crore. It would be funded through Rs 30 crore of internal accruals and the rest through borrowings. The average interest rate is 8.5 per cent per annum.

In the first quarter of 2005-06, the company recorded a 230 per cent growth in net profit to Rs 10.05 crore against Rs 3.05 crore in the corresponding quarter of 2004-05. Turnover increased by 18 per cent to Rs 74.42 crore from Rs 63.06 crore.

Mr Kanoria said that the company is open to acquisitions as it wishes to grow in an "inorganic" manner. "We have some plants in view but nothing have been finalised," he said.

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