Date:21/09/2006 URL: http://www.thehindu.com/2006/09/21/stories/2006092102221800.htm

Business

Birla Corp to expand capacity

Special Correspondent

Plans to invest Rs. 250 crore

KOLKATA: Birla Corporation Ltd. (BCL), an MP Birla group company, is planning to invest around Rs. 250 crore in debottlenecking schemes that will expand capacity by 1.25 million tonnes at its cement units at Satna (Madhya Pradesh) and Chanderia (Rajasthan), company Chairman, Rajendra Singh Lodha, said at the company's annual general meeting on Tuesday. He said the schemes would be completed within 18 months.

Mr. Lodha informed the shareholders that Azim Premji of Wipro had recently picked up shares in the company, which he felt demonstrated his faith in BCL's growth potential.

BCL, which paid its highest ever dividend of 22.5 per cent for 2005-06, is involved in jute, carbide and gas and auto trims besides cement, which is its main revenue.

The company's net profit stood at Rs. 125.76 crore in 2005-06 which was 45 per cent higher than the previous year. Total dividend payout stood at Rs. 19.76 crore.

Mr. Lodha said the captive power plants of BCL at Satna and Chanderia, each with a 27 MW capacity are running well, helping the company cut on power costs.