BWI: SRF Board Approves Rs. 665 cr Capex Projects, Interim Dividend and Buy Back

Press release from Business Wire India
Source: SRF Limited
Saturday, February 26, 2011 01:50 PM IST (08:20 AM GMT)
Editors: General: Consumer interest, Economy; Business: Banking & financial services, Business services, Chemicals, Financial Analyst, Stock exchanges, Textiles
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SRF Board Approves Rs. 665 cr Capex Projects, Interim Dividend and Buy Back


Gurgaon, Haryana, India, Saturday, February 26, 2011 -- (Business Wire India) -- -- greenfield project in South Africa; second overseas packaging film plant
-- second chemical plant at a new site in India to manufacture HFC-134a/ HFC 125
-- second interim dividend of Rs. 7 per share
-- buy back of shares up to Rs. 380 per share not exceeding Rs. 90 cr

SRF Board today approved expansion projects worth Rs. 665 crore including one for setting up of the company's second overseas packaging film plant to manufacture Biaxially Oriented Polypropylene (BOPP) film in South Africa. Earlier in October 2010, the board had approved a Joint Venture to set up a Bi-axially Oriented Poly Ethylene Terephthalate (BOPET) film plant of 28,500 MT per annum in Bangladesh. The new BOPP film plant with an annual capacity of 25,000 tonnes is being set us as a greenfield project at a total investment of around Rs. 250 crore. Equipped with a metallizer of 5400 tonne of annual capacity, the BOPP plant in South Africa is expected to start commercial production in July 2013. The new South African plant will also mark SRF's maiden entry into the BOPP space. Currently, SRF has an annual capacity to manufacture 59,500 tonnes of BOPET films per annum through two of its plants in India.

The only Indian manufacturer of HFC-134a, an ozone friendly refrigerant, SRF also obtained Board approval for setting up the company's second HFC-134a plant with an annual capacity of 15,000 tonnes in its Chemical Complex in Dahej. The capacity of the second HFC-134a plant is significantly higher than the company's existing 5,000 tonne capacity plant in Bhiwadi. The project is expected to be commissioned at an estimated cost of Rs. 365 crore. The new HFC plant, which is scheduled to become operational by January 2013, will also be backward integrated to produce 20,000 tonnes of AHF (anhydrous hydrofluoric acid), one of the key raw materials.

To meet the enhanced requirement of power and utilities for the new projects at Dahej site, SRF Board approved another project for Enhancement of Captive Power Generation Capacity to 14 MW at an estimated cost of Rs. 50 crore.

"While we are determined to expand operations in all our businesses to achieve and retain global leadership, the expansion in the Chemicals and the Packaging Films businesses is part of our overall strategy and ongoing efforts to reduce our dependence on nylon tyre cord", said Mr. Ashish Bharat Ram, Managing Director, SRF.

Besides the capex proposals, the Board approved a second interim dividend at the rate of 70% amounting to Rs. 7 per share. Earlier, the Board had approved an interim dividend at the rate of 70% amounting to Rs. 7 per share.

The Board also approved buy back of shares of the company up to Rs. 380 per share not exceeding Rs. 90 crore from open market. Buy back can remain open for the period up to 25th February 2012 or such earlier date as may be determined by the Board.

About SRF

Established in 1973, SRF as a group has today grown into a global entity with operations in 4 countries. Apart from Technical Textiles Business, in which it enjoys a global leadership position, SRF is a domestic leader in Refrigerants, Engineering Plastics and Industrial Yarns as well. The company also enjoys a significant presence among the key domestic manufacturers of Polyester Films and Fluorospecialities. Building on its in-house R&D facilities for Technical Textiles Business and Chemicals Business, the company strives to stay ahead in business through innovations in operations and product development. A winner of the prestigious Deming Application Prize for its tyre cord business, SRF continues to redefine its work and corporate culture with the TQM as its management way.



CONTACT DETAILS
Mukund Trivedy, Head of Corporate Communications, SRF Limited, +91 9871709177, mukund.trivedy@srf.com

KEYWORDS
CONSUMER, ECONOMY, BANKING, BUSINESS SERVICES, CHEMICALS, Financial Analyst, STOCK EXCHANGES, TEXTILES

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