SRF new plant in South Africa, which will be its second overseas units, will have an annual capacity of 25,000 tonnes
Technical textile maker SRF Ltd plans to invest Rs665 crore on expansion projects, which includes a new plant in South Africa and another in Gujarat.
"While we are determined to expand operations in all our businesses to achieve and retain global leadership, the expansion in the chemicals and the packaging films businesses is part of our overall strategy and ongoing efforts to reduce our dependence on nylon tyre cord," SRF MD Ashish Bharat Ram said.
The new plant in South Africa, which will be its second overseas units, will have an annual capacity of 25,000 tonnes. It is being set at a total investment of around Rs250 crore and is expected to start commercial production in July 2013.
"The new South African plant will also mark SRF's maiden entry into the Biaxially Oriented Polypropylene (BOPP) space. Currently, SRF has an annual capacity to manufacture 59,500 tonnes of Bi-axially Oriented Poly Ethylene Terephthalate (BOPET) films per annum through two of its plants in India," he added.
Earlier in October 2010, the board had approved a joint venture to set up a Bi-axially Oriented Poly Ethylene Terephthalate (BOPET) film plant of 28,500 MT per annum in Bangladesh.
The company has also obtained board approval to set up its second HFC-134a (an ozone friendly refrigerant) plant with an annual capacity of 15,000 tonnes in its chemical complex in Dahej in Gujarat.
The project is expected to be commissioned at an estimated cost of Rs365 crore.
The capacity of the second HFC-134a plant is much higher than the company's existing 5,000 tonne capacity plant in Bhiwadi.
In order to meet the enhanced requirement of power and utilities for the new projects at Dahej site, the company's board has approved to set up a captive power generation capacity of 14 MW at an estimated cost of Rs50 crore.
Apart from technical textiles business, SRF is a domestic leader in refrigerants, engineering plastics and industrial yarns as well.
On Monday, SRF ended 2.11% down at Rs310.15 on the Bombay Stock Exchange, while the benchmark Sensex gained 0.69% to 17,823.40.
Reliance Broadcast Network has already launched a general entertainment TV channel—Big CBS Prime—in partnership with CBS Studios International in India and two new channels —Love and Spark—are slated for launch next month
Reliance Broadcast Network Ltd (RBNL), a part of Anil Ambani-led ADA Group, is in the process of launching television channels in neighbouring countries such as Nepal, Bangladesh, Pakistan, Bhutan, Sri Lanka and Maldives.
The company has already launched a general entertainment TV channel-Big CBS Prime-in partnership with CBS Studios International in India and two new channels -Love and Spark-are slated for launch next month.
"We have already started the process to launch the CBS channels in our portfolio in neighbouring countries and applied for permissions for down-linking through our agents in the respective countries," Big Broadcasting, COO Ashutosh said. Big Broadcasting manages the broadcast business of RBNL.
He, however, did not specify the time-line for launching the channels as it would depend on official approvals from respective countries, but said the company was hopeful of doing so within this calendar year.
Ashutosh said in terms of revenues, the company expects to do better in the neighbouring countries immediately as in most of the locations RBNL will not have to pay carriage fee to air its channels, unlike in India.
Besides, expanding internationally, RBNL is also enhancing its distribution within India.
"We are currently reaching about 30 million homes in India and the viewership is growing fast. We are also getting very good response from advertisers," he said.
The channels are currently available in India through DTH service providers such as Videocon, Sun and cable operators.
"We have signed up with Airtel digital and are looking at Tata Sky and Dish TV. Even a lot of corporate enquiries are coming such as from hotels and offices," he added.
The company is also working on a plan to increase the number of channels in its bouquet.
"Going ahead there would be many more English programming, music and regional TV channels," he said.
Besides, the three CBS channels, RBNL is also set to re-launch Imagine Showbiz that it recently acquired.
In the radio business, the company has recently struck a marketing and sales alliance with the leading High FM of Bhutan to enter Siliguri and Bhutan.
The government has recently approved foreign investment proposal of Rs45.47 crore in RBNL for up to 20% of the total paid up capital of the company.
On Monday, RBNL ended 0.53% down at Rs66.05 on the Bombay Stock Exchange, while the benchmark Sensex gained 0.69% to 17,823.40.
Among the mega-cap stocks, the highest post-Budget gainers were ITC and Maruti—only because Budget 2011 has no negatives for them. The rest is a lot of hopes
It was a difficult time to present a Budget. Apart from the global political turmoil and the easy money policy of the US (which have caused oil, gold and silver prices to shoot up) the country is racked by high inflation (especially food), rising interest rates, flagging growth numbers and the multiple scams and corruption scandals.
This has created a sense of despondency which was reflected in the sharp fall in stock indices since November. The market was desperately looking for some cheer and finance minister Pranab Mukherjee's Budget speech provided some. Whether he lives up to the promises made is another matter.
The big news that the market reacted to is the promise of holding the fiscal deficit at 4.6%, when the expectation was that it will remain at 5% plus. The FM promises to ensure that the economy will grow at 9%, and he will bring down inflation, without increased taxation, or an amnesty scheme for black money.
Will he be able to walk that talk, or is the please-all Budget just a way to counter the flak that the UPA government has faced in recent months? Only time will tell.
Predictably, the stock market is confused and this is reflected in the way the Sensex had yo-yoed today (opened up 200 points, sank 150 points, soared again to 500 plus and was just 122 points up in the end). For a while it reacted positively to the lower fiscal deficit and government borrowing numbers, the proposal to allow foreign savings to come into Indian funds and also the absence of major negatives. But, at the end of the day, it is clear that the roadmap outlined by the Finance Minister won't be easy to follow.
On the positive side, the relief to marginal tax payers, the plan to raise Rs30,000 crore through infrastructure bonds with continued incentives for subscribers and the absence of any major new taxes is good news for individuals as well as companies. Permitting foreign institutional investors (FIIs) to invest in mutual funds may give a much-needed boost to this beleaguered sector and positively impact the capital market too. But that is over the medium to long term-provided all the taxation and Know Your Customer issues have been sorted out. There is nothing in it to change the short-term picture.
In our view, the Budget is long on talk but short on clarity about how it plans to implement various proposals. For instance, the apparent determination to moving towards a GST (General Sales Tax) regime is good, but it is well known that all States have yet to commit to its implementation. Similarly, the disinvestment target is maintained at an ambitious Rs40,000 crore, even though disinvestment plans for the current year have been postponed-after nine months of a bull market.
On new banking licenses, the policy framework is not ready, a year after the original proposal. Similar promises have been made on the Direct Tax Code, removal of supply side bottlenecks for the food sector, administrative reforms, simplification of tax filing and refund mechanism, the fight against corruption and the intent to curb the generation of black money. In short, everything remains the same as before and after the Budget, barring a few companies that have been hit (like Sesa Goa) and spared (like those in the auto sector and cigarettes).