Indo Rama aims to be $1 bn co by '09
Indo Rama Synthetics says a turnover of one billion dollar by fiscal 2009 is achievable.
By PTI |
NEW DELHI: Polyester manufacturer Indo Rama Synthetics India Ltd is eyeing a turnover of one billion dollars (about Rs 4,100 crore) by fiscal 2009 on the back of organic as well as inorganic growth.
"We are looking at a 50 per cent growth in the current fiscal to clock a turnover of over Rs 3000 crore and are confident to scale this further to become a billion dollar entity by fiscal 2009," Indo Rama Chairman and Managing Director O P Lohia told reporters here on Monday.
Having expanded capacities at its plant at Nagpur, Indo Rama is now looking to undertake further expansion and is eyeing "new opportunities for growth".
"We are evaluating various options to expand. We are open to everything and may also look at acquisitions. Full capacity utilisation at our plants will add to our revenues and aided by further expansion in related areas, a turnover of one billion dollar by fiscal 2009 is achievable," Lohia said.
The polyster manufacturing company launched its second plant at its integrated complex at Butibori, taking its annual production capacity of polyster staple fibres, filament yarns and textile grade chips from 3,00,000 metric tonnes to 6,00,000 metric tonnes.
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Currently, the company's capacity utilisation is about 75 per cent and it would work at full capacity by September-October, Lohia said adding that this would help Indo Rama increase its market share from the current 16 per cent to 20 per cent by end of the year. Indo Rama would add 30 mw power by the end of the month, taking its total installed capacity to 80 mw.
The company declared its results for the first quarter ended June 30 and posted a marginal increase of 4.12 per cent in net profit at Rs 2.27 crore as compared to Rs 2.18 crore for the same quarter last year.
"The profitability of this quarter was affected due to interest costs and depreciation incurred on capacity expansion. But going forward we expect profits to increase, with production volume going up in the coming quarters and a decrease in interest costs," Lohia said.
Total income of the company grew 54.01 per cent to Rs 729.04 crore for April-June from Rs 473.37 crore for the corresponding quarter a year ago.
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The board of directors of the company at its meeting on Monday also approved the draft scheme of amalgamation whereby Indo Rama Petrochemicals Ltd (IRPL) would be amalgamated into Indo Rama Synthetics.
As per the scheme, the swap ratio of 10:16 was approved so that the shareholders of IRPL for every 10 shares held
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in IRPL would receive 16 shares in Indo Rama Synthetics. Shares of the company closed at Rs 51.20, down 2.66 per cent at the BSE.
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