Riddhi Siddhi ties-up with Roquette for Rs 120 cr upgradation plan
Mumbai, Apr 10 (UNI) Riddhi Siddhi Gluco Biols Ltd has finalised capital expenditure plan of Rs 120 crore for the fiscal 2007 to upgrade its existing plants and invest in a new project for maize processing complex coming up at Pant Nagar in Uttaranchal for which it has forged a technical tie-up with Roquette Freres, a world major and the largest wet corn miller in France.
Outlining the upcoming project at Uttranchal, Riddhi Siddhi Gluco Biols Managing Director Mr Ganpatraj Chowdhary told newspersons here today that the new plant will have the capacity to process 1,65,000 tonnes of maize per annum. The completion of this project will see the doubling of its sales revenue and a subsequent increase in profits.
It has adopted both organic and inorganic strategies to fuel its projected growth, he said adding, ''The project at Uttaranchal is in line with its corporate philosophy of providing effective service to its customers and would cater to the domestic requirements as well the international markets.'' Replying to a question, Mr Chowdhary said the company proposes to fund the capex plans by equity, internal accruals and term loans.
Further he said the company has already issued equity to its French collaborator up to 14.95 per cent, while another five per cent has been given to a private investor.
Term loans to account for about Rs 65 crore, while the remainder of Rs 120 crore is to come in the form of private equity and internal accruals, he added. The French collaborator has recently invested Rs 31.73 crore towards acquiring 14.95 per cent equity in the Riddhi Siddhi Glycol.
Commenting on the tie-up with Riddhi Siddhi Roquette Freres Chairman Mr Marc Roquette said,''The booming Indian economy will create plentiful opportunities within starch sector. The near future will see many products from the Roquette Frere's stable being manufactured in India. Our technical know-how coupled with their understanding of the Indian market would help create tremendous value for all our stakeholders.'' Riddhi Siddhi Glycol with a modest export beginning of Rs 7.5 crore in the year 2004-05 has almost doubled in the current year.
With a keen focus on export markets, the company hopes that exports will account for about 15 per cent of sales by 2009-10 against the existing five per cent.
Currently, the company exports its products to Kuwait, Saudi Arabia, Babrain, Egypt, Bangladesh, Japan, Thailand, Indonesia, Vietnam and other Middle East and South East Asian countries. ''Our association with Roquette Freres will propel our export order books and we are confident of achieving more than our projected targets.'' Mr Ganpatraj Chowdhary said.
UNI SN KU SKB1611