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The SRF Board on Saturday approved expansion projects worth Rs 665 crore including one for setting up the company's second overseas packaging film plant. The plant would manufacture Biaxially-Oriented Polypropylene (BOPP) film in South Africa.
The investment on the new plant is around Rs 25 crore and it will have a 5,400 tonne annual capacity. The plant is set to start operations from July 2013.
SRF also obtained Board approval for setting up the company's second HFC-134a plant with an annual capacity of 15,000 tonnes in its Chemical Complex in Dahej. The capacity of the second HFC-134a plant is significantly higher than the company's existing 5,000-tonne plant in Bhiwadi. The project is expected to be commissioned at an estimated cost of Rs 365 crore. The new HFC plant is scheduled to become operational by January 2013.
“The expansion in the Chemicals and the Packaging Films businesses is part of our overall strategy and ongoing efforts to reduce our dependence on nylon tyre cord,” said Mr Ashish Bharat Ram, Managing Director, SRF.
Interim dividend
Besides capital expenditure proposals, the Board approved a second interim dividend at the rate of 70 per cent amounting to Rs 7 per share. The Board also approved buyback of shares of the company up to Rs 380 per share not exceeding Rs 90 crore from open market. Buyback can remain open for the period up to February 25, 2012, or such earlier date as may be determined by the Board.
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