Radha Madhav to set up Rs 60 cr unit in Uttaranchal

Radha Madhav Corporation Ltd (RMCL) will invest Rs 60 crore for setting up a manufacturing facility in Uttaranchal complying to international quality standards.

The funds for the project would be generated through issue of 1.8 million equity shares to India Star (Mauritius) Ltd, foreign currency convertible bonds (FCCBs) of $10 million and a term loan of Rs 20 crore, Radha Madhav informed the Bombay Stock Exchange.

The company was allotted land by State Industrial Development Corporation of Uttaranchal Ltd (SIDCUL) at IIE Pantnagar and has made partial payment for the allotted land.

The company plans to start commercial production before March 31, 2007, it added.The unit would manufacture approximately 18,000 metric ton of film per annum of poly vinyl chloride(PVC) calendared sheets used for blister packaging in pharmaceuticals industry, it said.

The company targets to sell pharmaceutical packaging material to approximately 800 pharmaceutical companies based in Uttaranchal and Himachal Pradesh, it added. The unit will enjoy 100 per cent excise exemption for 10 years and 100 per cent income tax exemption for next five years.

Radha Madhav Corporation, a Daman-based manufacturing company is engaged in primary and secondary packaging. The company's share was trading at Rs 32.40 up 0.31 per cent at the BSE.