Diamond Power to spend Rs 753 cr to expand production setup
Diamond Power Infrastructure plans to spend Rs 753 crore to expand its current manufacturing plant to produce conductors and medium voltage cables at Vadodra.
February 14, 2012 / 12:59 IST
Moneycontrol Bureau
Diamond Power Infrastructure plans to spend Rs 753 crore to expand its current manufacturing plant to produce conductors and medium voltage cables at Vadodra.The expansion is to be completed over 30 months in three phases beginning April 2013. Diamond Power said it will fund the investment via mix of rupee term loan, external commercial borrowings and supplier credit aggregating to Rs 440 crore and the rest will be via internal accruals.Of the planned Rs 753 crore investments, Diamond Power said it is already investing Rs 50 crore in a 6.3 mw windmill project, which is expected to go on stream in March this year.The company plans to expand its conductors manufacturing capacity to 150,500 mtpa from 50,500 mtpa at present. It will increase its rod manufacturing capacity to 122,000 mtpa from 32,000 mtpa currently.Additionally, it aims to put up additional three lines, each with an installed capacity of 2,500 kms, in medium voltage cables. This will increase its capacity to 12,700 kms, Diamond Power said on Tuesday.Diamond Power shares surged post the announcement. At 12:30 hrs, the stock was up 5.5% at Rs 134.50 on NSE. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
