The Hindu Business Line : GMR Industries on expansion mode

The company proposes to raise nearly 60 per cent of the expansion cost of Rs 401 crore by way of debt and meet the balance Rs 151 crore through internal accruals and fresh equity.

Hyderabad , Oct 24

GMR Industries Ltd (GMRIL), the flagship company of the GMR group, has embarked on a major expansion programme involving a capital investment of Rs 401 crore.

Addressing a press conference here on Monday, the GMRIL Managing Director, Mr K. Narayana Rao, said the company has set a target of achieving Rs 750-crore turnover by March 2008 with the help of expansion from a level of Rs 320-crore at the end of March 2005. Further, the company expects its topline to cross Rs 1,000-crore by March 2011.

The company proposes to raise nearly 60 per cent of the expansion cost of Rs 401 crore by way of debt and meet the balance Rs 151 crore through internal accruals and fresh equity. However, Mr Rao said the company would be able to decide on the exact size of equity issue only next fiscal after evaluating the internal accruals.

The company proposes to set up a new sugar complex with a capacity of 3,500 tonnes crushing per day (TCD) with 24MW cogeneration and 45-kilolitre distillery in Karnataka at a cost of Rs 232 crore. The project would be completed by September 2007.

The crushing capacity would be increased further to 5,000 TCD in the next three seasons, he said.

In the power segment, the company is setting up an 18 MW cogeneration unit in Maharashtra at an investment of Rs 76 crore to be completed by September 2007. A 10 MW wind energy project taken up in Karnataka at an investment of Rs 52 crore would take off by the current fiscal-end.

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