Mumbai: Diversified Aditya Birla Nuvo has earmarked Rs320-350 crore as capital expenditure for FY11 mainly to expand its carbon black capacity and to add stores under its garment business, officials said.
The firm which also has interests in financial services, telecoms and IT services had swung to a consolidated net profit of Rs180 crore in Jan-March versus a net loss of Rs146 crore a year ago.
“Our capex would mainly be used for expanding carbon black operations, garment operations and for some maintenance work we will conduct during the year, chief financial officer Sushil Agarwal said.
The company has taken a decision to not invest in its fertiliser operations in the short-term.
“We are waiting for a clear government policy on the availibility of natural gas, once thats finalised we will expand our fertiliser operations,” the firm’s managing director Rakesh Jain told reporters.
The fertiliser industry has been facing gas linkage problems and the government is looking into the issue of gas allocation for the industry, officials said.
The firm is expanding carbon black capacity and expects it to reach 500,000 metric tonnes annually in about two years’ from 315,000 tonnes by the end of May.
It will also add around 150 stores or about 200,000 square feet to its retail operations.
Improved profits in its manufacturing business, which includes carbon black and rayon, and reduced losses in its life insurance and garment businesses bouyed profits, the firm said in a statement.
Consolidated net revenues rose to Rs4440 crore from Rs4098 crore for the quarter.
Aditya Birla Nuvo shares ended up 1.73% at Rs769.05 in a weak Mumbai market.