Everest Kanto Cylinder to raise $50mln to set up unit in China

New Delhi, July 27 (UNI) Everest Kanto Cylinder today said it would raise 50 million dollars to set up a separate wholly owned subsidiary in China, EKC Industries (Tianjin) Co, to manufacture high pressure gas cylinders and other allied products of the company.

This first phase investment, will be raised through a mix of Equtiy Convertible Bonds (ECB), Foreign Currency Convertible Bonds (FCCBs), Global Depository Receipts (GDRs) and Private Placement besides internal accruals.

The company has also set up another wholly owned subsidiary named EKC international FZE in UAE, for doubling the existing capacity in that country. The production at the new unit is expected to commence in the third quarter.

The project outlay for this venture amounting to 8.5 million dollars has already been tied up through term loans and internal accruals, a company statement said.

''We have commenced production at our greenfield project at Gandhidham to manufacture 3.4 lakh cylinders. This is in line with our long term growth strategy,'' Everest Kanto Cylinder CMD Prem Khurana said.

The company's capacity has almost doubled with this expansion. It plans to manufacture three million cylinders per annum by 2010 and become one of the largest manufacturers of high pressure gas cylinders in the world, he said.

Meanwhile, the company said the members at the AGM yesterday, approved a dividend of 35 per cent (Rs 3.50 per share).

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