Pondy Oxide to set up EoU near Chennai

Chennai-based Pondy Oxide & Chemicals Limited is planning to set up an export-oriented unit near here to support its total business target of Rs 500 crore by 2011-12.

Ashish Bansal, who was inducted as director at the annual general meeting here on Thursday, said the company was planning to foray into new countries like Japan, Vietnam, Malaysia and Bangladesh to increase the export business. Its current export order size is about $2.5 million to be executed in the next two months.

The proposed unit would mainly cater to these new and current export markets. The investment in the project would be Rs 40 crore, which will be funded through debt and internal accruals.

The company has units in and around Chennai and one in Puducherry with a total capacity of 28,800 tonnes per annum, which would be increased to 60,000 tonnes by 2010-11, Anil Kumar Bansal, managing director, Pondy Oxides & Chemicals, told Business Standard.

Pondy Oxide registered a turnover of Rs 70 crore last year. It has set a target of Rs 125 crore in 2009-10 and Rs 500 crore by 2011-12. The company, which is into metals, metallic oxides and plastic additives, is planning to manufacture aluminum and value-added products.

Ashish Bansal said there would be uncertainties in 2009-10. “It is still unclear when the economic crisis will hit the bottom and whether the stimulus plan will push up the growth of global economy,” he added.