New Delhi, Oct. 16: Indo Rama is on an expansion drive. The synthetic fibre company, which recently announced a 10 per cent dividend on the back of its second quarter results, is putting up a new plant in Thailand.
Indo Rama is in the midst of putting up a polyester staple fibre (PSF) plant in India. The plant is expected to be up and running by the first half of 2005. The new plant is being set up in Nagpur. The new plant will be set up near the existing Butiburi plant of the company.
Speaking to The Telegraph, .P. Lohia, managing director of Indo-Rama Synthetics (I) Ltd (IRSL), said though the Thailand plant is being put up by Indo Rama, it is a project which totally belongs to a separate corporate entity, PT Indo Rama (Group) Indonesia, which belongs to his brother, S. P. Lohia.
“The new plant in India is on course and will be complete in 18 months’ time,” Lohia said.
The domestic plant is being set up in view of the increase in PSF demand that is being expected worldwide given the increasing inability of cotton to meet the fibre requirements of the world, Lohia said.
Subhash Katyal, who is assistant vice-president (finance) of Indo Rama Synthetics (I) said, “Globally, Indo Rama has three corporate entities which were divided among the Lohia brothers, on the basis of geographical areas. The third brother is A. P. Lohia who also has business interests in Thailand apart from Myanmar and Nepal. The three corporate entities do not have crossholdings,” Katyal said.
On the back of its second quarter results, Indo Rama India has announced an interim dividend of Rs 1 per share (10 per cent on an equity share of Rs 10) for 2003-04. The record date for the payment of dividend shall be November 7, 2003.
For the second quarter, the net profit of Indo Rama at Rs 43.60 crore is 61 per cent higher than Rs 27.05 crore in the corresponding period last year.