Date:28/09/2005 URL: http://www.thehindubusinessline.com/2005/09/28/stories/2005092802390200.htm

Back Kanoria Chem plans Rs 150-cr expansion

Our Bureau

New Delhi , Sept 27

THE board of directors of Kanoria Chemicals & Industries Ltd (KCIL) today approved increase in the chlor alkali manufacturing capacity by 110 tonnes per day (TPD) to 360 TPD with simultaneous expansion in various other chlorinated derivatives at the company's integrated intermediate chemical manufacturing complex at Renukoot in Uttar Pradesh.

The additional chlor alkali and chlorinated derivatives manufacturing capacity involves an estimated capital outlay of Rs 150 crore.

This is in addition to KCIL's current twin complementary Rs 180-crore expansion at Renukoot to enhance the existing capacity of the chlor alkali plant by 110 TPD to 250 TPD and double the power generation to 50MW, scheduled for completion by December-end this year.

Mr R.V. Kanoria, Chairman and Managing Director, said that the company intends to further enhance the chlor alkali capacity to meet the increased demand for chlor alkali products.

"This additional capacity, based on environment friendly membrane cell technology, will enable us to further derisk our existing business and enable us to cater to the increased demand for value added chlorinated derivatives. Improved chlorine utilisation and enhanced energy-efficient caustic soda capacity is likely to result in improved top line and bottom line for the company," he added.

The board also decided to raise funds through issue of securities, including FCCBs, up to a maximum of Rs 120 crore.

The decision of the board will be put up for shareholder approval at an EGM to be convened on October 28 in Kolkata.