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GHCL climbs on signing MoU to invest Rs 500 cr in Tamil Nadu

Capital Market 

GHCL rose 3.42% to Rs 388.80 after the company said it signed a memorandum of understanding (MoU) with the government of Tamil Nadu for investing Rs 500 crore in the state.

As per the MoU, GHCL will set up 40,000 ring spindles in Manaparai, Tiruchirappalli district to produce synthetic and synthetic blended yarn to cater to knitting and weaving segments. It will also install another 40000 ring spindles with 24 knitting machines in Paravai, Madurai district to produce 100% cotton yarn and knitted fabrics.

The company also plans to develop an EHT (extra high tension) power transmission facility in Manaparai location to ensure uninterrupted power supply.

In order to fulfill its commitment towards sustainable business practices and reduce its carbon footprint, GHCL has proposed to set up a 20 MW solar power park near Musiri, Tiruchirappalli district.

At the moment 52% of the energy requirements of GHCL's yarn business is fulfilled from renewable resources. Once the project is completed, almost 70% of GHCL's Energy requirement for the spinning business will be from renewables.

Commenting on the occasion, R S Jalan, managing director, GHCL said: "This MoU, will help us to create value for the community and is in accordance with our strategic growth plans and sustainability targets. Going forward, we will further enhance our energy portfolio to fulfil almost 90% of our energy requirements from Renewable sources."

On a consolidated basis, net profit of GHCL rose 30.18% to Rs 109.95 on 21.83% rise in net sales to Rs 982.59 crore in Q2 September 2021 over Q2 September 2020.

GHCL is a diversified group with an ascertained footprint in chemicals, textiles and consumer products segment.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Mon, November 29 2021. 14:55 IST