NEW DELHI: DCM Shriram will invest Rs 838 crore for expansion of its sugar and chemical business, according to the company's quarterly report.
Already, the company is implementing projects involving investments of Rs 350 crore for setting up of a distillery and aluminium chloride units besides expansion of its chlor-alkali unit. These will be commissioned in the second quarter of the next fiscal.
In its quarterly report, DCM Shriram said the board has given nod for additional investment of Rs 838 crore for expansion projects.
Out of this, Rs 500 crore is estimated to be invested for expansion of its DSCL Sugar-Hariawan unit. With the capacity enhancement, total sugar business capacity will increase from 33,000 tonnes crushing per day (TCD) to 38,000 TCD.
The rationale behind the sugar capacity addition is increase in cane availability, it said.
In its chemical business, the company will invest about Rs 98 crore to raise the capacity of its Chlor Alkali units in Bharuch in Gujarat and Kota in Rajasthan from 1,425 tonnes per day (TPD) to Rs 1,655 TPD.
About Rs 240 crore will be invested to install a new 66 MW power plant to replace existing old and inefficient 50 MW plant and provide additional 16 MW captive power for caustic soda expansion.
These projects will be financed through internal funds and debts, the company added.
DCM Shriram Ltd has reported a 88.21 per cent jump in its consolidated net profit at Rs 171.95 crore in the September quarter of the current fiscal on strong sales.
Its shares were trading up 0.02 per cent to Rs 549 a piece at 1242 hours on BSE today.