Mumbai, Jun 24 (UNI) Reporting a consolidated revenue of Rs 6,023 crore for last fiscal, with the profit after tax at Rs 477 crore, Tata Chemicals today said it would incur a Rs 500 crore capital expenditure this year, to improve the efficiency and capacity of its units in India and abroad.
Briefing newsmen on the results, Tata Chemicals Managing Director Homi Khusrokhan said the last fiscal had been an ''encouraging and eventful year''. Despite floods in the Mithapur plant and operational difficults at Magadi, the soda ash business had performed very well and there was a record production of urea.
Referring to the expansion plans, he said around Rs 200 crore would be spent on debottlenecking of the Babrala urea plant, whose production was expected to touch 3,500 tonnes from the current level of 3,000 tonnes per day after the process was completed in December.
The company also planned an investment of nine million Pounds in its UK plant and around 10 M US dollars in GCIP of the US, which the company had acquired early this year. The capital expenditure would be purely from internal accruals.
The company expected the new biofuel plant coming up at Nanded, to go on stream later this year, with an initial capacity of 30 kilo litres per day. The pilot plant would use sweet shorghum to produce ethonol. The oilseed would be procured through contract farming from about 8,000 acres of land.
Mr Khushrokhan said that the year had been a challenging one, also with the cost of inputs going high and erratic supply of inputs, such as phosphoric acid.
The GCIP acquisition had added new dimension to the soda ash business, with access to a significantly low cost natural resource and markets that were earlier not available. Tata Chemicals was the second largest manufacturer of soda ash in the world, with a capacity of 5.4 million tonnes.
Referring to the new business, he said the first collecion cum distribution centre at Melerkotla near Ludhiana, was formally commissioned in May this year. The response from the local farmers had been very encouraging. The second centre would come up at Kalyan near Mumbai and the company plant is poised to have two more such centres before the end of the current fiscal.
Similarly the company also planned to set up biofuel pilot units, using Jatropha seeds in five different agroclimatic conditions. The first one had been planned in Madurai in Tamil Nadu.
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