HYDERABAD: The GMR group of industries has announced its plans for a major expansion in the next two to three years involving an investment of Rs. 401 crore.

It has decided to set up a new sugar complex with 24 MW co-generation and 45 kl distillery in Karnataka. The project, estimated to cost Rs. 232 crore, is proposed to be completed by September 2007.

The group has also decided to set up an 18 MW co-generation unit at Latur in Maharashtra with an estimated investment of Rs. 76 crore.

The group is planning to increase the crushing capacity of its existing sugar plant from 3,125 tonnes to 5,000 tonnes by spending Rs. 40 crores. The group planned to enter the non-conventional energy segment by setting up a wind energy project in Karnataka with an investment of Rs. 52 crore, the Managing Director, K. Narayana Rao, said.

Mr. Rao told reporters here on Monday that the company planned to raise Rs. 250 crore of the required investment through debt while the balance would be mobilised through internal accruals and equity.

The company had registered an impressive performance during the second quarter posting a profit before tax of Rs. 12.11 crore against Rs. 5.77 crore during the corresponding period last year. The turnover increased to Rs. 152 crore during the first half of the current fiscal against Rs. 126 crore during the same period last year.

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