Calcutta, April 20: Vesuvius Ltd will double its manufacturing capacity from 2.20 lakh tonnes to close to half-a-million tonnes due to a steep rise in demand in the steel market.

Managing director Biswadip Gupta said the expansion project will be completed in 2-3 years. He was speaking on the sidelines of the company’s 13th annual general meeting here today. Gupta, however, remained noncommittal about the possible investment in the project.

Gupta said the company may opt for the acquisition path or set up a new unit to double its capacity. The company is also weighing a stock-split option to increase liquidity on the bourses.

Vesuvius declared a dividend of 30 per cent in the last financial year. Total income stood at Rs 136.13 crore and post-tax profit was Rs 20.86 crore.

Net sales in the current first quarter stood at Rs 33.54 crore while post-tax profit increased marginally to Rs 4.85 crore.