November 22, 2008

Gujarat Foils announces INR 120 crore CAPEX plan

PTI reported that, after acquiring a controlling 60% stake in aluminum foils maker Gujarat Foils for INR 33 crore, Topworth Group of Companies said that promoters of the company will now invest INR 60 crore in 2 phases for capacity expansion.

Mr Abhay Lodha chairman of Topworth Group of Companies said that "Gujarat Foils, which enjoys 40% share of the domestic aluminum foils market, will invest INR 60 crore in the first phase to enhance its capacity to 7,000 tonnes per annum from 3,000 tonnes annually now. Work on the first phase of capacity expansion has already been started and will be completed by August 2009."

Mr Lodha said that Gujarat Foils would go for another round of capital infusion by December 2009 and this time too the investment will be to the tune of INR 60 crore which will mainly be used for backward integration. He added that Gujarat Foils would take an INR 43 crore loan from financial institutions to fund the investment and the remaining would come from internal accruals and contributions from promoters.

Topworth Group of Companies had acquired majority stake in Gujarat Foils from Pramod Jain and has already made an open offer to grab more stake in the company. As of now, Pramod Jain holds 20% stake in the company and the rest is with the public. Gujarat Foils has its manufacturing facility in Ahmedabad on 50 acres of land.