DCW Lines up capex plan of Rs 525 Crore

New Delhi, Aug 31 (UNI) DCW Ltd today said it has lined up a capital expenditure plan of Rs 525 crore, aimed at expanding its capacities and using the by-products to augment its bottomline.

The plans are expected to be implemented by March 2008 in stages beginning from September 2007.

DCW Chairman and Managing Director S C Jain said the company plans to change its Mercury Cells into Membrane Cells which will increase the production from 60,000 to 1,00,000 of Caustic Soda per annum.

This will also reduce the consumption of electricity by over 30 per cent, thus increasing the profitability substantially. he added.

The company also plans to increase its Synthetic Rutile production from 30,000 tonnes to 60,000 tonnes. Also, in order to reduce the cost of power and steam, a new Captive Thermal Plant of 50MW capacity and having 70 tonnes of extra steam is under erection.

With the completion of the capex plan, the profitability of the company will go up substantially from the present level of Rs 50 crore, a company statement said.

The company is also mulling a new Iron Oxide Plant to produce yellow, red and black grades, to gainfully utilise its effluent.

This will be done either in-house or in joint venture with a foreign company.

The capex for this project is estimated at Rs 125 crore.

Profitability is estimated at Rs 30 crore per annum and may go on stream by November-December 2007.

DCW Chairman also said that the company's capital expenditure plan includes a Rs 150 crore FCCB offering over the next 18 months through a wellknown overseas merchant banker and long term loan from consortium of banks led by SBI.

DCW has also decided to double its Soda Ash capacity from 1,00,000 to 2,00,000 tonnes with an investment of Rs 200 crore and a technical feasibility study has been conducted by Dutch company Akzo and Humphrey. Glasgow will do the detailed engineering.

This Plant whould be operational by end 2008 and the project will increase the profit by Rs 40-45 crore per annum.

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