Jindal Aluminium to spend Rs800 crore for Karnataka plants

Jindal Aluminium would spend Rs300 crore from internal accruals and the remaining from a foreign bank to fund the project

Jindal Aluminium will invest Rs800 crore to set up two plants to make aluminium sheets and foils, and produce powder coated and anodised materials.

"We are setting both the plants in Karnataka. Work on the first plant, near Bangalore, for manufacturing of aluminium sheet and foils has already started. We are investing Rs500 crore outlay," Jindal Aluminium CMD Sitaram Jindal said.

The second plant would also come up near Bangalore for production of powder coated and anodised materials with an investment of Rs300 crore. However, the ground work on the plant would start only after the first plant gets operational in April next year. Jindal Aluminium claims to be the largest manufacturer of aluminium extrusion profiles in India commanding around 25% market share. It has 70,000 tonnes per annum installed capacity at its lone plant in Bangalore.

However, due to poor demand, the company could only produce 55,000 tonnes aluminium extrusion profiles last fiscal. Jindal said that the aluminium sheet and foil plant would have the capacity to produce 50,000 tonnes a year and provide direct jobs to 700 people. Jindal Aluminium would spend Rs300 crore from internal accruals and the remaining from a foreign bank to fund the project.

It would not require any funding requirement from outside for the plant to produce powder coated and anodised materials, he said, adding that cash generated from its existing business would take care of that. "We have land in possession for the second plant. It will likely to go on stream by June-July, 2013," he said, adding that there was a huge demand for such products overseas.
Jindal said the company had clocked Rs800 crore turnover last fiscal and after the operationalisation of these plants, its topline would likely to go past Rs2,000 crore by the end of 2013-14 fiscal.

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DLF hopes to reduce debt to Rs10,000 crore in two years

DLF has been selling its non-core assets such as hotels and plots in the last few years to cut debt. So far, the company had raised Rs3,480 crore from sale of non-core assets

The country's largest realty firm DLF expects to pare its debt burden of over Rs22,500 crore to less than half in the next two years. As part of the strategy to bring down its total debt to about Rs10,000 crore by 2013, the firm is closing in on a few deals of to sell non-core assets, including Amanresorts.

"The plans are in place to reduce the debt by Rs6,000 crore-Rs7,000 crore in the next 18 months by selling non-core assets," a source said. Along with sale of non-core assets, the company is also banking on increased revenues to help cut the debt.

"If the cash flows remain good and sales continue at a comfortable rate, the debt of the company will come down to around Rs10,000 crore level in the next two years," the source said.

DLF is likely to generate Rs1,800 crore-Rs2,000 crore revenue in 2011-12 from rentals business that is growing 15% every year. The company's net debt rose by nearly Rs1,000 crore in the quarter ended 30 September 2011 to Rs22,519 crore from Rs21,524 crore as on 30 June 2011. It went up mainly due to delay in receipt of payments from non-core asset sales. The company expects to raise about Rs3,000 crore by March 2012 through sale of non-core assets such as IT Park in Noida, IT SEZ at Pune and hospitality business Amanresorts.

On selling its hospitality venture Amanresorts, DLF Vice Chairman Rajiv Singh had said: "We are likely to close the deal by next quarter. We have got bids from many players and all of them are international firms." He did not comment on the valuation of the deal that would include 29 properties of the hospitality chain that DLF had acquired in 2007 for $400 million. Sources, however, had said the company is expecting about Rs2,000 crore-Rs2,500 crore from the deal. It is also understood that DLF will retain the Delhi property of the Amanresorts.

DLF has been selling its non-core assets such as hotels and plots in the last few years to cut debt. So far, the company had raised Rs3,480 crore from sale of non-core assets. Earlier this year, DLF had announced plans to raise Rs7,000 crore in the next 2-3 years.

In the late afternoon, DLF was trading at around Rs208.50 per share on the Bombay Stock Exchange, 2.23% up from the previous close.

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Birla Sun Life MF launches Capital Protection Oriented Fund-Series 8

Birla Sun Life MF new issue closes 12th December

Birla Sun Life Mutual Fund has launched Birla Sun Life Capital Protection Oriented Fund-Series 8, a close-ended income scheme.

The investment objective of the scheme is to provide capital appreciation linked to equity market with downside protection at the end of tenure. Also, the fund expects to achieve down side protection by investing in debt securities with tenure comparable with the tenure of the plan, subject to the credit risk. Further, the fund expects to achieve the market-linked appreciation (upside) by investing in premium of exchange traded options. The tenure of the scheme is 25 months.

The new issue closes on 12 December 2011. The minimum investment amount is Rs5,000.

CRISIL Balanced Fund Index is the benchmark index. Satyabrata Mohanty and Ajay Garg are the fund managers.

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