SRF to invest Rs 91 cr for enhancing R&D, production capabilities

SRF Ltd will invest about Rs 91 crores for enhancing research & development capabilities of its chemical division and upgradation of technical textile plant. “The Board of Directors of the company at its meeting held on February 10, 2015 has approved the capital expenditure proposals of Rs 25 crores (approximately) for enhancing the R&D capability of the chemical business at Bhiwadi, Rajasthan and Rs 66 crores (approximately) for modernisation of technical textile plant at Gwalior, MP,” said SRF Ltd in a BSE filing.
 
This is the second major investment announced by the company in less than a year. In August 2014, the Board of Directors of SRF had approved a capex proposal for setting up of a new specialty chemicals plant at its chemical complex at Dahej in Gujarat with a total investment of Rs 113 crore.
 
Meanwhile, SRF Ltd reported a marginal 1 percent year on year growth in net profit at Rs 72.62 crore for the third quarter ended December 31, 2014 (Q3FY15) – compared to Rs 72.06 crore in Q3 of last fiscal year - due to increased depreciation and interest expenses.
 
Net sales during the third quarter of 2014-15 increased marginally to Rs 870 crore against Rs 859 crore during Q3FY15 in spite of reduction in commodity prices, SRF said in a statement.
 
“The operations have performed as per expectations. While some adverse impact of the sharp fall in the commodity prices was felt in the current quarter, a residual impact will be experienced in the next quarter. The company continues its journey on the stated strategic path by making focused investments,” said the company in a press release.
 
Apart from technical textiles business, SRF produces refrigerants, engineering plastics and industrial yarns. The company also enjoys a significant presence among the key domestic manufacturers of polyester films and fluoro specialities.