MUMBAI: Higher capacity utilisation, increased realisation and a strengthening of operational efficiencies have seen Grasim post a 90 per cent growth in consolidated net profit for the year ended March 31, 2007, at Rs. 1,968 crore against Rs. 1,041 crore on a net revenue of Rs. 14,167 crore against Rs. 10,275 crore.

According to a company statement, the operating profit was up 84 per cent at Rs. 4,290 crore against Rs. 2,337 crore.

VSF business

The company's viscose staple fibre (VSF) business registered a 3 per cent growth in sales volumes and realisations were up 16 per cent at Rs. 85,729 per tonne. Grasim will be augmenting capacity to meet increasing demand and has planned a 63,875 tonnes expansion at Kharach, which is to be completed by 2007-08. The company's capex in the expansion and modernisation at various plants would be Rs. 712 crore. The company is also in the process of obtaining approvals for expanding capacity at Harihar (Karnataka) by around 31,000 tpa. Upon completion, the VSF capacity would go up to 3.65 lakh tonnes. Also, the capacity of the Chinese joint venture will be ramped up from 30,000 tpa to 60,000 tpa by the second quarter of 2008-09.

In cement, the production was up 3 per cent at 3.88 million tonnes and sales were up marginally. The revenues were up 35 per cent on the back of improved realisations.

Grasim's cement expansion at Shambhupura is likely to be on stream by the first quarter of 2008-09 and it will also set up a thermal power plant at Shambhupura and Kotputli.

It has so far invested Rs. 834 crore in these projects and an additional capital outlay of Rs. 2,345 crore over the next two years, including cost of modernisation, debottlenecking, setting up of a grinding unit at Dadri, RMCs and captive power has been planned. Upon completion, the company's cement capacity will go up by 9.5 million tonnes to 22.6 million tonnes.

UltraTech plans

UltraTech plans to invest over Rs. 1,900 crore in the next two years on capacity expansion, thermal power plants and modernisation. This includes setting up of a 4 million tpa project at Tadapatri (Andhra Pradesh) and captive power plants at different locations.

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