Hinduja Foundries Ltd got its shareholders’ nod to raise around Rs 125 crore through rights issues. The proposed fund raising would support company’s investment of Rs 70 crore this fiscal at its new facility in Sriperumbudur and to modernise its Ennore facility.
Meanwhile, the company has started supplying Renault in France.
The company’s Chairman R Seshasayee said the company is planning to infuse additional capital of Rs 125 crore to meet the funding requirements. He was addressing the shareholders at the company’s Annual General Meeting (AGM). The company proposes to issues 1,66,63,812 shares of Rs 10 each at a premium of Rs 65 a share on rights basis.
The company has a order book, exceeding 140,000 metric tonnes of cast iron parts for 2011-12. The demand is to exceed the capacity, he said.
“While on one hand we have a great opportunity, because of automotive industry growth, on the other hand we have issues like skilled labour and sustained power,” said Seshasayee.
The company is also planning to to expand its capacity and commence supplies in the larger weight segment of upto 500 kg casting weight.
Seshasayee said this segment is more profitable. Meanwhile, the company’s Sriperumbudur unit is now producing contemporary blocks and heads for bother commercial vehicles and tractor segments.
Current capacity of the plant is 50,000 tonne and the company is planning to increase it to 72,000 tonnes, said V Sankar, chief financial officer, Hinduja Foundries.
He added, that this facility will also help the company to look at exports. “Of the total capacity 15 per cent will be for export market,” he said.
The company has sent three containers of sample production to Renault for testing in Turkey. The company will also supply for JCB, Cummins and other automotive majors.
Company’s sales revenue rose to Rs 551.16 crore in 2010-11 from Rs 391.54 crore, a year ago period.
The government today said it has granted Maharatna status to Bharat Heavy Electricals Ltd and Gas Authority of India Ltd.