HSIL to invest Rs 650 cr on capacity expansion in 3 yrs

Hindustan Sanitaryware & Industries Ltd (HSIL) today said it plans to invest Rs 650 crore for capacity expansion in the next three years.

The company, which has two divisions - building material and container glass, plans to invest in both new as well as existing facilities.

"We plan to invest Rs 650 crore in capacity expansion in the next three years. Our existing plants as well as the new plants will be covered under this capex," HSIL President RB Kabra told PTI.

The company will invest Rs 200 crore on its sanitaryware and ceramics business, while Rs 350 crore will be on its container glass business. Another Rs 100 crore will be invested on the bathroom fittings business.

"We plan to invest Rs 75 crore in augmenting sanitaryware capacities in our plants in Bibinagar and Bhadurgarh and Rs 125 crore for the first phase of a new plant at Jhagadia in Gujarat," Kabra said.

The company had recently signed a memorandum of understanding with Gujarat government to set up the plant at Jhagadia.

The company aims to touch 5 million pieces a year mark by 2013-end from the current 2.8 million pieces annually after the capacity expansions.

It also plans to invest Rs 90 crore to set up a new facility at Bhiwadi. The facility will focus on chrome plated faucets and is expected to be completed by December, 2012. The company has already acquired 10 acres land for the purpose.

"Another Rs 10 crore would be go in augmenting the capacities of the existing plant there," Kabra said.

HSIL will also invest Rs 300 crore on its Bhongir facility in Andhra Pradesh. HSIL also plans to spend another Rs 50 crore on its Sanatnagar facility near Hyderabad. The two facilities produce container glass.

"Our glass melting capacity will rise to 1,500 tonne by January, 2012 from the present 1,125 tonne a day, with these expansions," Kabra said.

The company today posted a net profit of Rs 87.35 crore for the year ended March 31, 2011. Its net sales for the year crossed Rs 1,000 crore mark and stood at Rs 1,035.33 crore.

Shares of HSIL today closed at Rs 155.80 on the Bombay Stock Exchange, down 1.08% from its previous close.