New Delhi, Dec 31: Nelcast Ltd today said it has completed the Phase I of its capacity expansion at its new facility at Gudur, Andhra Pradesh and started the commercial production.
A leading producer of machine-moulded graphite iron castings for the automotive and other segments of the manufacturing industry, the company has another plant in Ponneri in Tamil Nadu. ''The production in Gudur was started in end-September 2007. After successful completion of initial runs, the company started scaling-up,'' said a company statement. This expansion will increase of the installed capacity to 1,26,000 tonnes per annum from the current 1,02,000 tonnes, it added. The company is also mulling to set up a castings factory in Uttaranchal to cater to the needs of the northern Indian market.
The company had also raised about Rs 95.27 crore by the way of a public issue via 25 per cent equity dilution in June this year. This has contributed to the working capital for the latest wave of capacity expansions, which the company has undertaken down the months into September this year.