Hatsun Agro Product Ltd plans to set up a 2.5 lakh litre a day milk processing plant in south Tamil Nadu.
R.G. Chandramogan, Managing Director, Hatsun Agro, said the company will invest about Rs 50 crore in the plant to come up in Tirunelveli.
A curd unit with a capacity of about 20,000 litre a day is also likely to come up at the facility.
This will process and pack curd in packets.
Hatsun Agro now has about 1.2 lakh litres of curd production and packaging capacity.
The company has a total capacity to process about 24 lakh litres of milk and dairy products daily and its capacities are stretched.
According to information provided on the BSE, the company’s Board has given an in-principle approval to set up the milk plant.
Hatsun Agro has also decided to withdraw a proposed Rights Issue as it is generating adequate internal accruals to meet its requirements.
The company has tied up with a private firm for its power requirement instead of making separate capital investment in a power project and the power situation in the State is expected to improve with time.
Therefore, the Board decided to withdraw the proposed issue. The Board has declared a second interim dividend of Rs 0.50 (50 per cent) for an equity share for 2012-13.
Q3 net up
The company has reported a 40 per cent jump in net profit for the third quarter ended December 31, 2012 compared with the corresponding quarter previously.
The company has reported a net profit of Rs 15.02 crore (Rs 10.66 crore) on a total income of Rs 543.20 crore (Rs 404.35 crore).