Mcnally Bharat plans expansion

Kolkata, June 30 (UNI) Williamson Magor group company Mcnally Bharat Engineering Company Limited today said it will invest around Rs 50 crore in a year's time for manufacturing industrial gearboxes and for expansion in its plants at Kumardubi and Bangalore.

'' We will start manufacturing industrial gearboxes and have initiated talks with some foreign companies for a joint venture. The total investment in the project will be around Rs 35 crore,'' Mcnally Bharat Engineering Company Limited's Managing Director Srinivash Singh told reporters.

Mcnally Bharat will invest around Rs 15 crore for expansion of its existing plant at Kumardubi, around 200 kms from Kolkata, and for setting up a new product line for catering to the airport baggage handling sector.

''We have acquired around four acres of land at Bangalore for foraying into the baggage handling sector which will attain prominence with the modernisation of airports by the government,'' Singh said.

''Our capacity will be doubled after the expansion,'' he said. The Kumardubi plant presently manufactures equipment for material handling and mineral processing and Bangalore plant manufactures pumps and thickners.

Mcnally, which had already raised seven million US dollars through FCCB issue, plans to raise another 10 million US dollars through the same route. The company also plans to issue preferential shares of Rs 24 crore to the promoters.

''The fund will be used for capacity expansion and the rest will be used as working capital,'' he said adding that the company had already approached the Luxemburg Stock Exchange for the FCCB issue.

Mcnally Bharat, which posted Rs 335.21 crore business in 2005-06, is targetting around Rs 1000 crore turnover by 2009-10 following expansion into new product lines.

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