Phillips Carbon Black plans Rs 470 cr expansion

KOLKATA: RPG group company Phillips Carbon Black Limited (PCBL) has earmarked a Rs 470 crore investment for expansion of its manufacturing and power generation capacity at its existing facilities across the country, a company official said on Thursday.

PCBL Chairman Sanjiv Goenka said out of the Rs 470 crore, Rs 120 crore would be spent for putting up a 30 MW plant at an investment of Rs 120 crore at Durgapur, a greenfield plant and 14 MW co-generation plant at Mundhra (Gujarat) for Rs 215 crore, expansion of Kochi plant and a 12-MW co-generation plant at an outlay of Rs 135 crore.

Goenka said the funding of the expansion programme would be made from internal accruals and debt. He said the promoters would be issued warrants that would be converted into shares.

Post this, the promoters' holdings in the company would go up from 50.17 per cent to 53.17 per cent.

He ruled out any public issue by PCBL at the moment. The debt-equity ratio of the expansion plan had been pegged at 1.5:1.

Post expansion, PCBL would catapult into the sixth largest carbon black plant in the world with a total capacity of 3.95 lakh tonnes.