The board of SRF has approved expansion projects worth Rs. 665 crore including setting up of the company's second overseas packaging film plant to manufacture biaxially oriented polypropylene (BOPP) film in South Africa.
Besides the capex proposals, the board approved a second interim dividend of Rs. 7 per share. The company has declared a similar first interim dividend in October last year.
The board also approved buy back of shares of the company up to Rs. 380 per share not exceeding Rs. 90 crore from the open market. The buy back will remain open up to February 25, 2012 or such earlier date as may be determined by the board, the release adds.
Earlier in October 2010, the board had approved a joint venture to set up a biaxially oriented polyethylene terephthalate (BOPET) film plant of 28,500 tonnes annually in Bangladesh.
The new BOPP film plant with an annual capacity of 25,000 tonnes is being set up as a greenfield project at an investment of Rs. 250 crore and is expected to start commercial production in July 2013.
The new unit 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 annually through two of its plants in India. The company has also obtained board approval for setting up the company's second HFC-134a plant (a ozone friendly refrigerant) with an annual capacity of 15,000 tonnes at its chemical complex in Dahej. The project is expected to be commissioned at a 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, the company's board approved another project for enhancement of captive power generation capacity to 14 MW at a cost of Rs. 50 crore.
Keywords: the greenfield project