Vikas WSP Ltd to invest Rs 735 cr

CHENNAI: Vikas WSP Ltd, manufacturer of guar gum polymers and its derivatives in India, plans to set up two manufacturing plants in Baroda and Bikaner at an investment of Rs 735 crore.

The Baroda plant is coming up at an investment of Rs 375 crore and would manufacture hydroxypropylguar and cationic guar used in making soaps, shampoos, lotions, conditioners. The unit would commence production in 2010-11 with a capacity of 12,600 tonnes, B D Agarwal, Managing Director of the company, told a press conference here on Tuesday.

The company is also setting up a plant in Bikaner, Rajasthan, and would manufacture organic guar. The unit would come up in 2008-09 at an investment of Rs 200 crore, he said. The capacity of the plant is 25,000 tonne per annum.

It would be spending Rs 160 crore towards tie-ups with farmers for contract farming in these places, he said.

Agarwal said while the promoters were investing Rs 140 crore, Rs 185 crore was raised through internal accruals, Rs 50 crore as term loan and Rs 360 crore through strategic clients abroad to fund the expansion.

The Bombay Stock Exchange had suspended the company's shares from being traded on the exchange from October 2001 on complaints levelled against the company. However, SEBI after investigation had revoked the suspension and trading would resume from August 27, he said.