The Hindu Business Line : Hinduja Foundries plans Rs 350 crore investment

CHENNAI: Hinduja Foundries Limited will go in for an investment of Rs 350 crore to increase its production capacity to 2.26 lakh tonne in the next two to three years.

Mr Mahadevan, Managing Director of Hinduja Foundries said here on Tuesday that apart from setting up a Greenfield unit at Hyderabad at a cost of Rs 150 crore, the company would also set up a low pressure aluminium foundry unit with a production capacity of 5,000 tonnes at Sriperumbudur at an investment of Rs 50 crore.

The company would invest Rs 50 crore at its existing unit at Sriperumbudur to enhance the production capacity from 50,000 tonnes to 72,000 tonnes, he said adding that an iron cast-machining unit would also be set up at Sriperumbudur at an investment of R s 100 crore.

"We will go for debt, equity and internal accruals to fund our expansion plans. Though 51.3 per cent of our revenue is from Ashok Leyland, we are hoping to bring it down to 35 per cent by focusing on other customers," Mr V Shankar, Chief Financial Office r of the company said adding the company would maintain its focus on catering to the high-end segments of Ashok Leyland.

Earlier, announcing the fiscal results for the year 2007-2008, Mr Mahadevan said the company had registered 14 per cent growth in turnover to Rs 451.42 crore as compared to Rs 395.24 crore in 2006-07.

He said while the profit before tax had gone up to Rs 25.90 crore, the profit after tax stood at Rs 16.92 crore. - PTI

Prev: Rupee falls sharply
Next: L&T electrical jt venture launches switchboard unit in S Arabia

Business Line | NUS Index |