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May 27, 2010, 12.28 PM IST
Diversified Godrej Industries Ltd plans to invest Rs 150 crore over the next 3 years to expand its chemical manufacturing capacity, a top official said on Wednesday.
"These will be new plants manufacturing oleochemicals," Adi Godrej, Chairman told Reuters. Oleochemicals are chemicals made from vegetable oils, used in various industries.
Godrej Industries makes industrial chemicals and hold stakes in other group firms.
The firm will also be concentrating on launching high margin speciality chemicals this fiscal, he added.
It witnessed a 10% year-on-year growth in FY10 in its chemicals business. The firm enjoys a 40% revenue share in its chemicals business from overseas and the remaining is from the domestic market.
Godrej Agrovet, an associate firm which is the market leader in animal feed, poultry and oil palm plantations in the country also has significant investments lined up in the these businesses, Godrej said.
"Oil palm plantations is a major investment area for us and we are lining up considerable investment in it," Godrej said, but did not give any financial details.
Another associate company Godrej Hershey Ltd, is planning to launch new products this fiScal, he added.
"We are going to launch chocolates soon and that will be a new product for us," Godrej said. The firm currently makes a range of 'toffee' products along with processed foods and beverages.
He also said the firm does not have any fund-raising plans for Godrej Industries and plans to fund all expansion via internal accruals.
Godrej Industries, earlier in the day, posted a huge surge in its FY10 standalone net profit to Rs 80.92 crore from Rs 18.08 crore a year ago.
"The profits have grown because of a turnaround in the economy and then our chemicals business turned around sharply and recorded healthy performance during the quarter," Godrej told Reuters.
Its consolidated profit also grew on the back of robust growth in its associate companies like Godrej Consumer Products, which did well because of consolidation of Godrej Sara Lee, Godrej Properties alongwith Godrej Agrovet and Godrej Hershey.
The firm posted a 83% jump in consolidated net profit to Rs 203 crore on net sales of Rs 3410 crore.
Shares of the firm ended up 2.25% at Rs 147.95 in a firm Mumbai market.
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