Hinduja Foundries plans Rs 70-cr capex for capacity expansion

Faced with power shortage woes and a voluntary retirement scheme that “depressed” results, Hinduja Foundries had a tough year in FY11. Even as manpower and power issues continue to haunt the company, it hopes to meet the demands of the auto industry. The company's order book at present is 1.4 lakh tonnes of casting iron parts. It is planning a capex of Rs 70 crore for capacity expansion at its Sriperumbudur plant from 50,000 tonnes to 72,000 tonnes. The company has plants in Ennore, Hyderabad, and a “modern” factory in Sriperumbudur near Chennai. The old factory in Ennore (in Tamil Nadu) will also be modernized.

Hinduja Foundries is also looking to bring in additional capital infusion of Rs 125 crore through a rights issue of 1,66,63,812 equity shares of Rs 10 each at a premium of Rs 65, in the ratio of 29 equity shares for every 50 equity shares held. For the year ended March 31, 2010, Hinduja Foundries had clocked net sales of Rs 551 crore and a net profit of Rs 7.48 crore.