New Delhi: Kamdhenu Ispat will invest Rs 150 crore in its paints division over three years to nearly double its capacity to 78,000 litres per year, says a PTI report
"We have decided to invest Rs 150 crore in three years, around Rs 50 crore each year, to raise the capacity of paints division to 78,000 litres per year from 42,000 litres a year now," company's Chairman and Managing Director Satish Agarwal said today.
Kamdhenu Ispat, which is mainly into manufacturing of TMT bars and structural steels for use in the construction sector, had forayed into the paints business in 2008 by setting up a plant near its steel mill at Bhiwadi in Rajasthan.
The company intends to fund the proposed investment by raising up to Rs 75 crore from private equity fund, Rs 50 crore debt and the remaining Rs 25 crore from internal accruals.
Kamdhenu produces decorative paint products. It has 5,000 dealers and distributors and 31 sales depots.
Bullish on the paints division, which contributed Rs 148 crore to the company's revenue of Rs 921 crore last fiscal, Agarwal said revenue from paints business is likely to go up 40 per cent this fiscal.
"By 2016-17, our revenue from the paints business should go up to over Rs 500 crore," he said, adding the company would go for further capacity expansion beyond 2016-17, though the road ahead is yet to be firmed up.