GIL plans new sugar factory in Karnataka

Hyderabad, Apr 26 (UNI) GMR Industries Ltd.(GIL) is likely to achieve a financial closure for the greenfield sugar plant at Haliyar in Karnataka by June 2006.

All the licenses have been obtained and the financing is underway. The order for the long delivery machinery has been placed with Thermax and Greensal Power Systems, the company said in a release here today.

''The company, as part of its expansion plans, will increase its capacity from its existing 3125 tonnes to 5000 tonnes during the first half of the year.'' With a focus on farmers the company plans to venture into the sunrise sector of agri-business and agri infrastructure including dairy, MDF and Bio-Diesel.

GIL, the flaship company of the GMR groups representing its manufacturing section has registered an increase in Profit after Tax from Rs 18.69 crore to Rs 34.52 crore during the year 2005-06 up by 85 per cent. The company phased out its trading activities during the year resulting a decrease in the turnover from Rs 310 crore during 2004-05 to Rs 268 crores during 2005-06. The profit before tax increased from Rs 31.57 crore to Rs 44.92 crore in 2005-06. The company has proposed an increased dividend of 25 per cent for the financial year 2005-06 as compared to 20 per cent declared for the year 2004-05.

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