DCW lines up Rs 525 crore capital expenditure plan

Mumbai, Aug 31 (UNI) DCW Ltd has lined up a capital expenditure plan of Rs 525 crore, aimed at expanding its capacities and using the by-products to augment its bottom line.

This capex plan is expected to be implemented by March 2008 in stages beginning from September 2007, a company release said.

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

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

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

With completion of this, the profitability of the company will go up substantially from the present level of Rs 50 crore.

To gainfully utilize its effluent, a new Iron Oxide Plant to produce Yellow, Red and Black grades is being put up. This will be done either in-house or in JV with a reputed foreign company in this field. 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, the release added.

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

The company has also decided to double its Soda Ash capacity from 1,00,000 tonnes to 2,00,000 tonnes with an investment of Rs 200 crore and a technical feasibility study has been conducted by the Dutch company Akzo and Humphrey and Glasgow will do the detailed engineering. This Plant should be operational by end 2008, which will increase the profit by Rs 40-45 crore per annum, added the release.

UNI SN GB SKB1802