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Surya to invest Rs550 cr, aims Rs4,500 cr turnover

Surya to invest Rs550 cr, aims Rs4,500 cr turnover
PTI
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First Published: Wed, Jun 24 2009. 10 15 PM IST
Updated: Thu, Jun 25 2009. 05 32 PM IST
New Delhi: Lighting products and steel pipe manufacturer Surya Roshni on Wednesday said it will invest Rs550 crore in capacity expansion, including setting up two greenfield plants, in the next one year and is targeting a turnover of Rs4,500 crore by 2011-12.
The company is setting up a lighting equipment manufacturing unit in Gwalior for producing high mast tower and Octagonal street light poles. It is also going to set up a steel pipe producing plant in Bhuj, Gujarat.
“Out of the total Rs550 crore investment which we are planning, the company will invest Rs100 crore in expanding its lighting business and Rs400 crore for setting up steel pipe manufacturing plant,” Surya Roshni chairman and managing director J P Agarwal told reporters in the capital.
It will invest another Rs50 crore on modernising its existing units.
The company will focus primarily on manufacturing high mast tower and octagonal street light poles, which are mostly used in urban areas, for expanding the light business, he added.
The company has acquired around 50 acres of land near Gwalior, where it will set up a new manufacturing unit for producing lighting products, Agarwal said.
“We aim to become the largest lighting solution provider in the country and we will focus more on energy saving product such as CFL, FTL and T5 lamps,” he added.
Asked how the company would fund its proposed investment,Agarwal said it would be a mix of internal accruals and debt from the banks.
The company has closed the last fiscal with a turnover of about Rs1,700 crore and is targeting Rs2,500 crore in the current fiscal.
Going forward, when all the investments made in expansion programmes would start yielding results, the company is expecting its revenue to cross Rs4,500 crore by 2011-12, Agarwal said.
Out of this projected revenue in the next three years, lighting products would contribute about Rs1,500 crore, while the steel pipe business of Surya Roshni would put in the remaining Rs3,000 crore in the company’s kitty, he added.
Besides, the company is also looking at setting up a new research and development laboratory for lighting products in Noida.
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First Published: Wed, Jun 24 2009. 10 15 PM IST