WS to set up 2nd plant of 8,000 T capacity

Chennai, June 27 (UNI) The Chennai-based WS Industries (India) Ltd. (WSI), will set up its second manufacturing plant with an investment of Rs 100 crore, and strike a strategic technology and marketing alliance with the US-Europe-based global major PPC Insulators.

With 8000 MT per annum capacity, it would become fully operational by April 2008 and expand WSI's current capacity by 60 per cent.

WSI Vice-Chairman Murali Venkataraman told media here today the site was yet to be identified, but would be situated near the port.

'We are looking at all options. We are looking at Tamil Nadu, Andhra Pradesh and Gujarat. The site will be finalised soon', he said, adding that bulk of the output-about 90 per cent-would cater to export needs. The new plant would have an employee strength of 500.

The plant would be partly funded by equity investment by Schroder Credit Renaissance Fund, an international investment fund, which had taken a 14.9 per cent preferential stake in WSI by investing Rs.21.20 crore, paying Rs.67.30 per share for 3,150,000 Equity Shares.

In addition, the company planned to spend Rs 15 crore to further increase the capacity of its existing plant in Chennai from 14,000 MT per year to 16,000 MT per year in the next six months.

'The capacity expansions both brown field and green field, are being done to cater to the strong demand for porcelain insulators both in India and overseas. The global market is witnessing strong growth, thanks to the rapidly expanding demand for electricity especially in China and parts of South America', he said.

MORE UNI GV AA 1622