DCM Shriram to invest Rs 1,300 cr to expand sugar, chemical biz
DCM Shriram is into sugar, fertilisers, seeds, chemicals, cement and UPVC windows businesses.
"We have initiated many expansion projects in the company, mainly in sugar and chloro-vinyl chemical businesses with an estimated investment of almost Rs 1,300 crore," DCM Shriram Chairman and Senior MD Ajay Shriram told PTI in an interview.
These expansion projects would be completed in the next 12-18 months.
Giving details, Shriram said the company would be adding cane crushing capacity by 5,000 tonnes per day while a distillery would be set up with a capacity of 200 kilo litres per day. That apart, 30 MW co-generation power capacity would be added.
Shriram said another Rs 240 crore would be spent on 66 MW captive power plant at its Kota plant in Rajasthan.
In plastic business, Rs 32 crore has been earmarked for adding capacity of 40 tonnes per day.
"The expansion will help in future growth of the company," he said.
The investment will be met through internal accruals and debt.
Total income from operations, however, rose marginally to Rs 2,077.66 crore during April-June period of 2018-19 fiscal from Rs 2,065.03 crore in the corresponding period of the previous year.
"We have been consistently pursuing initiatives to strengthen all our businesses. The company has been continuously investing to increase volumes, enhance competitiveness and strengthen the integration," said Shriram.
These steps would improve the company's returns profile and provide continuous growth, he added.
"The plans to further expand capacity are progressing well and will become operational in phases," said Vikram Shriram, Vice Chairman and MD, DCM Shriram.
The new power plant would be commissioned in October 2019 and this will reduce power costs, he added.
"In sugar business, we are further enhancing integration with additional power and distillery capacity to be commissioned in phases over next 18 months. This will provide stability to sugar business," Vikram said.
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)