Tile manufacturer Somany Ceramics today said it has entered into an agreement with state-run GAIL for supply of gas to enhance the captive power generation capacity by 5 Mw at a manufacturing unit in Haryana.
The company said it expects to enhance net profit by Rs 6 crore annually on the back of the initiative.
"Somany Ceramics has entered into a long term agreement with GAIL for the required quantity of natural gas annually for running the generators," the company said in a statement.
At present, the company has a capacity of 2 Mw power generation.
Besides, the company will also install equipment for full utilisation of the waste heat generated from the generators.
"Somany Ceramics expects improvement in its bottom line by about Rs 600 lakh annually beginning from the next financial year on account of saving in power and fuel costs, improvement in output and the quality of the products," it added.
The company said uninterrupted power supply becauase of the initiative will help in reducing the production loss.
