The Hindu Business Line : Finolex to set up captive power plant at PVC unit

To ensure continuous and steady supply of power at lesser cost for the PVC plant at Ratnagiri, Finolex Industries Ltd is setting up a coal-based 22 MW captive power plant. The work has been started and the power plant would be operational by September 2007.

Mr S.S. Dhanorkar, Assistant Managing Director, Finolex Industries Ltd, noted that it was also thinking of setting up a special economic zone (SEZ) at its 70-acre prime land vacant at its pipes plant.

The necessary approval for this project was granted by the board of directors at its meeting held on Friday.

He noted that approval has recently been received from the Ministry of Environment and Forests for its proposed project to set up a breakwater facility at Ratnagiri. The construction of breakwater would make the company's port operational round the year resulting into saving in inventory cost of raw material, he said.

The impact of the increased capacity on the company's topline is expected to be seen in the current fiscal. Commenting on the financial performance of the company, he said that it has registered a dip in turnover and net profit for the year ended March 2006.

Turnover, net down

It has clocked an annual turnover of Rs 907 crore and reported a net profit of Rs 42 crore for the year ended March 2006, as compared with Rs 1,001 crore and Rs 96 crore, respectively, in the previous year, according to an official release from the company.

He said the board of directors has recommended dividend of 15 per cent (Rs 1.50 per share) for the year ended March 31, 2006 and an additional silver jubilee dividend of 15 per cent (Rs 1.50 per share) aggregating to 30 per cent (Rs 3 per share). The company's EPS stood at Rs 3.41. Profit before tax for the fourth quarter was higher at Rs 31 crore against Rs 28 crore in the corresponding quarter.

However, the net profit for the quarter was lower at Rs 16 crore as compared with Rs 27 crore during the same period mainly on account of a higher tax provision.

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