SRF to pick majority stake in Bangla JV for $52 mn

NEW DELHI: Industrial chemicals manufacturer SRF Limited plans to invest $52 million to pick a majority stake in a 80:20 joint venture with Dhaka-based Nitol Niloy Group to set up a polyester film manufacturing plant in Bangladesh, SRF said on Tuesday.

The plant, which will be set up with a total cost of $65 million, is expected to start production by end of calendar year 2012.

SRF’ share price closed at Rs 401.80, up 1.45% at the Bombay Stock Exchange on Tuesday after net profit of the Delhi-based company grew 77% to Rs 121 crore for the quarter ended September 2010 over the year ago period. Its revenue rose 42% to Rs 748 crore in the same period. Ashish Bharat Ram, MD, SRF Limited, said the growth in profit was driven by increased demand for polyester films.