"Gujarat Foils, which enjoys 40 per cent share of the domestic Aluminium foils market, will invest Rs 60 crore in the first phase to enhance its capacity to 7,000 tonne per annum from 3,000 tonne anually now," Abhay Lodha, chairman Topworth Group of Companies said.
"Work on the the first phase of capacity expansion has already been sarted and will be completed by August next year," he said.
Stating that the first phase of capacity expansion would be completed by August next year, Lodha said Gujarat Foils would take a Rs 43 crore loan from financial institutions to fund the investment and the remaining would come from internal accruals and contributions from promoters.
Topworth Group of Companies had acquired majority stake in Gujarat Foils from Pramod Jain and has already made an open offer to grab more stake in the company.
As of now, Pramod Jain holds 20 per cent stake in the company and the rest is with the public.
Aluminium foils are one of the most commonly used materials for packaging, wrapping, storing and baking of food products. India consumes around 9,000 tonne of Aluminium foils a year, Lodha said.
