Kolkata, May 12

Graphite India Ltd will expand graphite electrode capacity by 10,500 tonnes at a cost of Rs 187.50 crore at its Durgapur plant.

The company, the largest manufacturer of electrodes in the country, currently has a total electrode capacity of 78,000 tonnes — 60,000 tonnes in the country and 18,000 tonnes in Germany.

Mr K.K. Bangur, chairman of the company, told Business Line that the expansion project would be complete within the next 18 to 24 months. He said internal accruals will largely fund the project. “We may also go in for short-term debts to part-finance the project,” he added.

The company, with a decent cash flow, had sold some surplus property in Bangalore in 2006 for about Rs 100 crore and invested the money in 3-year bonds, which would mature next year. “We do not need to draw on this fund,” he explained.

The chairman also said that the company has no plans to sell any more property. The last round of FCCB conversion has seen the company’s paid-up capital grow to Rs 30.22 crore.

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