May 13, 2010
Leading graphite electrode manufacturer Graphite India has scaled up its expansion plan which is expected to take its capacity to one lakh tonnes. The group, which has three production facilities in India and one in Germany (through a subsidiary) is now eyeing the global number three slot.
Chairman K. K. Bangur said here at a pressmeet that the company had doubled its earlier capacity expansion plan to add 20,000 tonnes at its Durgapur unit.
The company's other units are in Bangalore, Nashik and Rotehnbach in Germany with a combined capacity of 78,000 tonnes. Mr. Bangur said "We are well positioned for a strong recovery in the steel industry (it caters to the electric arc furnace segment) and our capacity expansion has been enhanced from 10,500 tonnes to 20,000 tonnes at a competitive capital cost."
This programme is set to be completed in 18 months at a cost Rs. 255 crore which will be funded through internal accruals. "There is no plan to raise equity," Mr. Bangur said after a board meeting. The company is also implementing a Rs. 214-crore power capacity augmentation programme.
Pointing out that the growth in the steel sector was pointing towards increased demand for electrodes, he said the slowdown last year had pulled down average capacity utilisation to 52 per cent for the company.
However, with improved cost reduction and debt management, the company increased its standalone profit by 20 per cent in 2009-10 to touch Rs. 232 crore.
The top line remained flat at Rs. 1,178 crore due to the meltdown.
The company proposed a dividend of Rs. 3.50 per share of Rs. 2 each against Rs. 3 per share in the previous year.
With the global situation improving in most countries, barring Europe, Mr. Bangur expected exports to improve this year. Exports, which constitute 70 per cent of the company's sales, dropped to 50 per cent last year.
Chairman K. K. Bangur said here at a pressmeet that the company had doubled its earlier capacity expansion plan to add 20,000 tonnes at its Durgapur unit.
The company's other units are in Bangalore, Nashik and Rotehnbach in Germany with a combined capacity of 78,000 tonnes. Mr. Bangur said "We are well positioned for a strong recovery in the steel industry (it caters to the electric arc furnace segment) and our capacity expansion has been enhanced from 10,500 tonnes to 20,000 tonnes at a competitive capital cost."
This programme is set to be completed in 18 months at a cost Rs. 255 crore which will be funded through internal accruals. "There is no plan to raise equity," Mr. Bangur said after a board meeting. The company is also implementing a Rs. 214-crore power capacity augmentation programme.
Pointing out that the growth in the steel sector was pointing towards increased demand for electrodes, he said the slowdown last year had pulled down average capacity utilisation to 52 per cent for the company.
However, with improved cost reduction and debt management, the company increased its standalone profit by 20 per cent in 2009-10 to touch Rs. 232 crore.
The top line remained flat at Rs. 1,178 crore due to the meltdown.
The company proposed a dividend of Rs. 3.50 per share of Rs. 2 each against Rs. 3 per share in the previous year.
With the global situation improving in most countries, barring Europe, Mr. Bangur expected exports to improve this year. Exports, which constitute 70 per cent of the company's sales, dropped to 50 per cent last year.
