"We are investing Rs 58 crore to set up a unit for producing LPG composite gas cylinders at Halol in Gujarat, and Rs 56 crore to start a new unit to manufacture cross laminated plastic products in Vadodara," Supreme Industries Managing Director MP Taparia said.
Besides, it is investing Rs 28 crore in a new unit at Hosur, Tamil Nadu to manufacture protective packaging products and also invest in expansion of other value-added products, he said, adding expansion will be completed by September 2013.
The capex will be funded through internal accruals and part of it will come from selling its space in Commercial Corporate Park in Mumbai for about Rs 70 crore.
During the September quarter, the company realised Rs 20.75 crore from sale of 13,169 sq ft of the premises. It has further negotiated for sale of 41,625 sq ft for about Rs 70.06 crore. Sale is likely to be completed in the December quarter.
The cash accruals from property sale will reduce its borrowings to Rs 350 crore in June 2012 from Rs 511 crore in June 2011, Taparia said.
During the quarter, the firm's total income and operating profit stood at Rs 480.42 crore and Rs 58.35 crore, compared to Rs 437.76 crore and Rs 56.70 crore a year ago, an increase of 9.75% and 2.91%, respectively.
Consolidated income and net profit for the quarter under review stood at Rs 501.18 crore and Rs 32.55 crore, as against Rs 473.44 crore and Rs 45.75 crore a year ago.
Operating margin remained under pressure due to fall in raw material prices and weakening of rupee against dollar.
Following the completion of expansion plans, the revenue contribution from the value-added products division will increase to Rs 850 crore in this fiscal from Rs 680 crore last fiscal, Taparia said.
The government today said it has granted Maharatna status to Bharat Heavy Electricals Ltd and Gas Authority of India Ltd.