Calcutta, May 12: City-based Graphite India Ltd has drawn up expansion plans for its Durgapur plant.

The KK Bangur company will invest Rs 187.5 crore to increase graphite electrode capacity by 10,500 tonnes from the current 34,000 tonnes.

“We hope to complete the project in two years,” K.K. Bangur, chairman of Graphite India, said.

The company has the requisite land for the expansion.

After the expansion, Graphite’s domestic capacity will rise to 70,500 tonnes.

It also owns facilities in Germany, having 18,000-tonne capacity.

“We believe Graphite is No. 5 in the world. We aspire to move up in the pecking order,” Bangur said.

The expansion is coming at a time when the graphite electrode industry is expecting a substantial rise in raw material cost. Till now, Graphite has been able to pass on the rise in petroleum coke to consumers. Coke is released as a byproduct during the processing of crude oil. Hence, the price of coke is linked to that of crude oil, which is at a historic high.

Sales chart

Graphite has reported 28 per cent growth in sales at Rs 1,155.87 crore during 2007-08 against Rs 900.01 crore in the previous year.

Excluding exceptional income, the net profit for 2007-08 was higher at Rs 133.65 crore compared with Rs 97.63 crore in the previous year, an increase of 37 per cent.

For the quarter ended March 31, 2008, Graphite recorded sales of Rs 360.20 crore against Rs 256.67 crore in the corresponding quarter of the previous year.

The net profit for the quarter rose 42 per cent to Rs 34.27 crore from Rs 24.06 crore in the same quarter of the preceding year.