Heg Goes In For Capacity Expansion

The total cost of the expansion is pegged at Rs 55 crore for which the company has already tied up a term loan of Rs 45 crore and the balance Rs 10 crore would be met from internal accruals. The expansion is being undertaken in two phases: the first phase would be completed by January, 2001 while the second by July, 2001.

The capacity expansion will enable the company to cater to meet 95 per cent of the overseas demand. Further, it would bring about advantages of economies of scale along with the operating cost declining on account of better facilities.

 

Presently, the company exports nearly 79 per cent of its total production of graphite products to the US, Canada, France, Germany, Italy, Taiwan, South Korea, Australia, etc.

Meanwhile, for the quarter ended June, 2000, the company's net profit went up 37 per cent to Rs 8.27 crore while the total sales rose by 19 per cent to Rs 120.21 crore. Sales from graphite account for 46 per cent of the company's turnover.