KOLKATA: The RPG group on Thursday announced green and brownfield investments totalling Rs. 475 crore in Phillips Carbon Black Ltd (PCBL), a move that will take its carbon black capacity to 3.95 lakh tonnes from 2.75 lakh tonnes now and its power generation capacity to 74.5 MW from 56 MW.

Second plant

Company Chairman, Sanjiv Goenka, told reporters that the projects include setting up a Rs. 215 crore second plant, with a capacity of 75,000 tonnes of carbon black and 14 MW of power at Mundhra in Gujarat (the first is at Baroda), more than doubling the capacity of the 40,000-tonne Kochi plant along with a 12 MW power plant, at an investment of Rs. 135 crore and completing the 30 MW power plant at Durgapur in West Bengal at a cost Rs. 120 crore.

Durgapur project

While the Durgapur project would be completed within the fourth quarter of 2007-08, the remaining two are targeted for completion by December 2008-09.

Alongside, PCBL is eyeing overseas markets especially in East Europe for acquisitions, Mr. Goenka said.

For the investments on hand, the promoter group plans a mix of debt and equity. Since the Durgapur project is already tied up, to raise the balance amount, Rs. 140 crore equity would be raised. Of this, Rs. 45 crore is through preferential equity by RPG and Rs. 95 crore through internal accruals. The warrants priced at Rs. 149 each would raise the promoters' stake to 53 per cent by March 2009 from 50.17 per cent now. Debt would fill the Rs. 210 crore gap.

The chairman said that deriving the benefits of co-generated power, the company increased its sales revenue by 36 per cent in 2006-07 with gross revenue touching Rs. 1,127 crore and pre-tax profit increasing sharply to Rs. 44.50 crore. Mr. Goenka said the company was now attracting FII attention.

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