September 08, 2008

Graphite India to expand electrode capacity at Durgapur

BL reported that Graphite India Limited will expand graphite electrode capacity by 10,500 tonnes at a cost of INR 187.50 crore at its Durgapur plant. The expansion plan follows a surge in demand from the arc furnace steel sector locally and globally. Graphite India exports around 70% of its production.

It currently has a total electrode capacity of 78,000 tonnes, 60,000 tonnes in India and 18,000 tonnes in Germany.

Mr KK Bangur chairman of Graphite India Limited said that the expansion project would be complete within the next 18 to 24 months and internal accruals will largely fund the project. He added that "We may also go in for short term debts to part finance the project."

Mr Bangur also said that it has no plans to sell any more property. The last round of FCCB conversion has seen the company’s paid up capital grow to INR 30.22 crore.

Meanwhile, Graphite India has reported a net profit growth of 37% YoY at INR 133.66 crore for the year to March 31st 2008. The profit growth in the fourth quarter of 2007-08 has been placed at 42% YoY.