The Hindu Business Line : Riddhi Siddhi up on expansion plans

Riddhi Siddhi Gluco Biols has been gaining steadily on the bourses on the back of its expansion plans. The stock surged 5.39 per cent in the last one week and 22 per cent in the past month at Rs 182. Trading volumes have surged to about 49,000 shares against the two-week average figure of 8,800-shares.

According to analysts tracking the company, Riddhi Siddhi is a major player in the corn-starch industry, which is set to witness sharp growth. According to industry estimates, Indian corn starch industry currently enjoys a market of Rs 1,500 crore per annum. The company announced that it had crystallised capex plans for over Rs 120 crore for the financial year 2007 to upgrade its existing plants and invest in a new project for maize processing complex coming up in Pant Nagar, Uttaranchal. This new plant will have the capacity to process 1,65,000 tonnes of maize per annum. The company proposes to fund the capex plans by equity, internal accruals and term loans. The completion of this project will see the doubling of its sales revenue and a subsequent increase in profits. The company has adopted both organic and inorganic strategies to fuel this projected growth.

K.S. Badri Narayanan

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