Indian Rayon outlines Rs 750 crore capex plan

Indian Rayon has announced a capital expenditure plan of Rs 750 crore, spread over the next three years.

The company has lined up expansion plans for all its businesses and is looking at upgrading operations and modernisation of its units. The Aditya Birla group company is also planning to upgrade its business process outsourcing arm "" Transworks.

The company is planning to set up its third centre in Bangalore with 800 seats. Adesh Gupta, chief financial officer, Indian Rayon, said: "We are planning a capex of Rs 276.8 crore in the current year and Rs 327 crore in 2005-06. The company will also invest around Rs 144 crore in the financial year 2007."

While the company would be spending Rs 45.8 crore for its viscose fibre yarn business in the current fiscal year, it has earmarked Rs 110.8 crore for capex in the year 2005-06.

The company has outlined a modernisation plan for its garments division, which entails an expenditure of around Rs 100 crore in three years.

"In the current year, we will be investing around Rs 90 crore for modernisation of our VFY, garments, carbon black, textiles and other businesses," Gupta said.

The company has outlined capacity expansion and modernsation in its insulators division. "We will be investing Rs 33 crore to expand the capacity by 8,000 tonne per annum, while Rs 24 crore will be spent on modernisation," Gupta said.