HSIL Ltd is planning a capex of

Posted By: Religare
Subscribe to GoodReturns

HSIL Ltd is planning a capex of Rs 350 crore for capacity expansion of its sanitaryware, faucet, and container glass plants by 2013. For the purpose of funding its capacity expansion plan, the Sanitaryware firm has already completed a qualified institutional placement for Rs 150 crore previous week through an issue of 1.1 crore shares at a price of Rs 136.1per share. The Sanitary ware major is likely to arrange the remaining amount of funding worth Rs. 200 crore from internal accruals. The company intends to utilize some parts of the proceeds in enhancing the capacity of its ceramic tiles plant at Andhra Pradesh and Haryana from 28 lakh pieces to 50 lakh pieces in three phases. Another part of the fund is also likely to be invested in expanding capacity in the container glass plant from 1,025 tonnes to 1,150 tonnes per day at a cost of Rs 60 crore. While the remaining portion of fund will be used for the raising current capacity of its faucet from 3lakh pieces to 6lakh pieces by March 2011, and setting up a new plant in Gujarat by April 2012 and also in setting up a new plant in Gujarat over a period of 2 years. Legg Mason Global Funds PLC, Batterymarch Financial Management Inc, Blackstone Group, GMO, and Royal Bank of Scotland PLC are among the major investors for the purpose. In the Indian sanitaryware market of about Rs 10,000 crore, the largest player in the segment with a 40 per cent market share in sanitaryware products, HSIL reported revenues of Rs 836 crore for FY10.

Story first published: Thursday, October 14, 2010, 23:07 [IST]
Please Wait while comments are loading...
Company Search
Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'