Date:07/05/2008 URL: http://www.thehindu.com/2008/05/07/stories/2008050755651600.htm

Business

Hinduja Foundries draws up Rs. 350-crore investment plan

Special Correspondent

CHENNAI: The Rs. 450-crore Hinduja Foundries Ltd. (formerly Ennore Foundries) has indicated that the non-Ashok Leyland component in its turnover will rise to 65 per cent two years hence. Addressing a press conference here on Tuesday, V. Mahadevan, Managing Director, said 51 per cent of the current turnover came from sales to Ashok Leyland.

Returns to dividend list

The company reported a profit after tax of Rs. 16.92 crore on a turnover of Rs. 451.42 crore for 2007-08, up from Rs. 16.16 crore and Rs. 395.24 crore, respectively in the previous year. The board of directors has proposed a dividend of 20 per cent. The company has been out of the dividend list after 1996-97. The promoters hold 69 per cent equity (post-the $15 million GDR issue) in the company.

Mr. Mahadevan said that the high-end needs of Ashok Leyland would be fully met by Hinduja Foundries.

Capacity expansion

The company, he said, had drawn up a Rs. 350-crore investment plan to drive up the capacity to 2.26 lakh tonnes in the next two-to-three years.

At present, the company has a capacity of 1.52 lakh tonnes (Ennore: 66,000 tonnes; Hyderabad: 36,000 tonnes; and Sriperumbudur: 50,000 tonnes).

Expansion of capacity of its Sriperumbudur plant from 55,000 tonnes to 72,000 tonnes at a cost of Rs. 30 crore, establishment of a 48,000-tonne greenfield venture in Hyderabad at Rs. 150 crore, setting up of a 2,500-tonne low pressure aluminium die casting unit at Sriperumbudur at Rs. 50 crore and putting up of a machining unit in Sriperumbudur at a cost of Rs. 100 crore were among the projects now under way.