Date:22/08/2007 URL: http://www.thehindu.com/2007/08/22/stories/2007082255121800.htm

Business

Vikas WSP’s expansion plans

Corporate Reporter

To invest Rs. 735 crore

CHENNAI: Vikas WSP, engaged in the manufacture of guar gum powder, is planning to launch some health related products of guar gum. These can be used in managing diabetes type-2, lowering cholesterol and regulating blood pressure.

Addressing presspersons here on Tuesday, B. D. Agarwal, Managing Director, said the company was planning to establish a guar derivative plant at GIDC Savali in Baroda which will commence operations in 2010-11. The company’s existing units are located in Sriganganagar (Rajasthan) and Siwani in Haryana where abundant raw material is available.

Mr. Agarwal said the company was planning to invest Rs. 735 crore in its Baroda and Siwani units.

The required resources will be found through promoter funding to the tune of Rs. 140 crore, placement of shares with overseas investors for Rs. 360 crore, internal accrual Rs. 185 crore and term loans Rs. 50 crore.

To resume trading

Mr. Agarwal said the company’s shares, listed on the Bombay Stock Exchange (BSE), were suspended for trading with effect from October 2001 pending investigation against certain allegations. The BSE has now revoked suspension and trading in shares will be resumed with effect from August 27, 2007, Mr. Agarwal said. The company has reported a sales turnover of Rs. 239.63 crore and a net profit of Rs. 41.97 crore in the year ended March 31, 2007. In the first quarter ended June 30, 2007, the turnover was Rs. 55.22 crore and the net profit was Rs. 9.85 crore.