Aditya Birla Nuvo plans to undertake a capital expenditure of Rs 589 crore by the end of FY13. The company plans to enhance operating margins by maximising operating efficiency and passing on the rise in input and fuel costs to its customers, said a presentation by the company.
The company plans to augment its caustic soda capacity for its rayon business by an additional 125 tonnes a day (tpd) taking the total capacity to 375 tpd at a cost of Rs 155 crore. Out of this Rs 13 crore has already been spent in FY11 and out of the remaining, Rs 63 crore would be spent during this fiscal and Rs 79 crore during FY13.
In its carbon black business, AB Nuvo plans to expand capacity further by 85,000 tpa each at Patalganga in the second phase and in Southern India to capitalise on auto sector growth.
AB Nuvo also has plans to enhance yield using a high margin product mix in its insulators business. In a bid to tap the growth potential in the power sector, Aditya Birla Insulators is adding 2,000 tpa to its existing capacity through debottlenecking at a capital expenditure of Rs 19 crore to be spent in FY12.
AB Nuvo's fashion and lifestyle business has plans to open new stores and augment existing capacity. Out of a total outlay of Rs 69 crore, Rs 3 crore has already been deployed in FY11 while remaining would be spent in FY12.
In addition, out of an outlay of Rs 435 crore earmarked for process improvement, upgradation and maintenance, Rs 72 crore has been spent in FY11, Rs 359 crore would be spent in FY12 and the remaining Rs 4 crore in FY 13.
Aditya Birla Nuvo's revenue for the fourth quarter of FY11 stood at Rs 4,148 crore, up 15 per cent over the corresponding quarter of last year. The company's net profit saw a 103 per cent increase year on year to Rs 224 crore (Rs 110 crore).