You are here: Home » News-CM » Equities » Hot Pursuit
Business Standard

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.

Powered by Capital Market - Live News

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

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

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