Kanoria Chemicals to invest Rs 150 cr for expansions

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New Delhi, Oct 26 (UNI) Kanoria Chemicals and Industries Ltd today said it will invest Rs 150 this fiscal on expanding its existing facilities and set up new ones.

''We will invest Rs 150 crore this fiscal which will be partly financed by a 15 million dollar loan from IFC, which has taken up 10.84 per cent equity in the company,'' said company Chairman and Managing Director R V Kanoria. The remaining amount will be invested from its internal accurals.

The company had invested about Rs 200 crore last fiscal and plans to increase capacity from the present 90,000 tonnes to 1,30,000 tonnes this fiscal.

The company is also planning to bid for Nalco's greenfield project with a planned capacity of 50,000 tonnes entailing a further investment on the part of the company.

''If the bid is successful, the investment for the project will depend on number of factors. For example if Nalco does not provide the power, investment will run to Rs 250 crore,'' Mr Kanoria said.

Mr Kanoria said the company was lookin to ramp up its Alcohol based intermediates content and was looking to set up a plant in Haldia with an initial investment of Rs 30 crore and investments of Rs 150 crore in the next three years.

The company is also in the process of installing a bio-ethanol plant to make fuel grade ethanol in Ankhleshwar with a planned production of 50,000 litre per day. ''It will be a downstream project and will entail a maximum investment of Rs five crore,'' said Mr Kanoria.

Oil Psu's like IOC and HPCL are expected to be the major customers for the company for this product.

Meanwhile, the company is focussing on environment protection.

While the company is planning to double its capacity by 2009, it intends to eliminate environmentally hazardous mercury cell technology for manufacturing caustic soda with the environmental friendly membrane base technology, he said.

This will be the company's third phase of expansion with an investment of Rs 150 crore and capacity increasing from 1,30,000 tonnes to 1,50,000 tonnes in 2009.

The company is also improving on its bottomline by converting by-products like chlorine into stable bleaching powder and poly- aluminium.

UNI

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