Agrochemicals producer Nagarjuna Agrichem Limited (NACL) reported a 15.96 per cent increase in net profit to Rs 12.86 crore for the quarter ended March 2010, compared with Rs 11.09 crore in the corresponding quarter previous year. Sales, however, declined marginally by 1.9 per cent to Rs 140.02 crore from Rs 142.77 crore in the same period.
The company has declared a final dividend of 30 per cent on equity share of Rs 10 each.
NACL director and chief operating officer Ashok Muni said the company planned to expand its production capacity by 9,000 tonnes by 2011 at a cost of Rs 250 crore. The expansion plans included setting up a greenfield facility at a cost of about Rs 205 crore in a special economic zone near Vishakapatnam, within the Petroleum, Chemicals and Petrochemical Investment Region. The facility to be commissioned in 2011 would focus on technicals (active ingredients).
He said NACL recently concluded its de-bottlenecking initiatives at Srikakulam and Ethakota facilities in Andhra Pradesh at a total cost of Rs 40 crore. In the next two years, the company would launch a range of new branded products to strengthen its portfolio in pesticides for crops like paddy, wheat and tea. It would also enhance its distribution in Bihar, Madhya Pradesh and North East, which haven not been fully tapped, by setting up around 500 new dealers in these states.
