Vikas sets up two new plants

Hyderabad: Vikas WSP Ltd, a manufacturer of gaur gum polymers and derivatives, will invest Rs 735 crore in expanding capacity.

“We will be setting up two new plants at Bikaner and Baroda for manufacturing organic polymers and chemically modified polymers respectively. We already identified land for the plants,” Mr B.D. Agarwal, Chairman and Managing Director, told newspersons on Tuesday.

The company, which got the nod from SEBI to trade in equity shares after more than five years, would invest Rs 735 crore for the expansion.

“Out of this, promoters will pool in Rs 140 crore while strategic investors will bring in Rs 360 crore,” he said.

About Rs 185 crore would be internal accruals, while Rs 50 crore would come from term loans from banks, he added.

After the investment, the promoter’s stake would go up to 42 per cent from 13 per cent now, while the share of strategic investors would be 25 per cent.

“In about two years from now, our total capacity will be more than double.”

The company currently has a capacity of over 45,000 tonnes.

Last fiscal, it clocked Rs 240-crore turnover with profit of Rs 42 crore.

“This year, we are expecting to clock Rs 325 crore. By 2010-11, we are targeting Rs 1,250-crore turnover,” he added.