SVP Industries plans Rs 50 crore capex plans this fiscal
Mumbai, May 12 (UNI) SVP Industries Ltd has formalised a capital expenditure plans of Rs 50 crore for the current fiscal to set up a distillery plant and an ethanol plant besides a captive power plant at Muzaffarnagar in Uttar Pradesh.
Briefing newspersons here, the company's President&Managing Director Ajay K.Swarup said it has opted for the capex plans through a combination of internal accruals, debt and equity. Elaborating he said the company will set up a multi-pressure distillation plant to produce Extra-Neutral Alcohol(ENA) of 50,000 litres per day from both molasses and grains.
That apart, Mr Swarup continued, the company is to set up a 40,000 litres per day Molecular Sieve Ethanol plant and the captive power plant to come up at Muzaffarnagar will have biogas as primary fuel by putting up a high pressure boiler with backpressure steam turbine.
After the expansion, the company's total capacity to manufacture country liquor and IMFL (Indian made foreign liquor) will move to 270 lakhs barrels and 135 lakh barrels per annum respectively.
Replying to a question, Mr Swarup said the company has already filed its draft prospecturs with the Securities and Exchange Board of India(SEBI) for the initial public offering(IPO). Currently, the Company is owned entirely by Swarup families and after the IPO, the promoters stake is likely to come down to 74 per cent.
The Company has tie-ups and arrangements for bottling IMFL products with McDowell&Co of the UB Group, which also purchases large amount of bulk spirits from SVP's facilities. Its turnover for 9-months ended December 2005 stood at Rs 252.22 crore and a profit after tax(PAT) at Rs 4.01 crore.
UNI SN PM SKB1905