Corporate
Empee Distilleries to invest Rs 200 crore
Empee Distilleries Ltd, part of Empee Group, is planning to invest around Rs 200 crore in various projects during the current fiscal. Besides, the company is also planning to re-enter into beer business. - Empee Distilleries to invest Rs 200 cr - UB will be world"s No 1 spirits company next fiscal: Mallya - Kingfisher Airlines mulls rights offer to pare debt - MCF to increase speciality fert biz - MCF to up speciality fertiliser biz - United Spirits Q1 net up 54% Speaking on the sidelines of company’s annual general meeting M P Purushothaman, chairman, Empee Distilleries Ltd said that the proposed investment is mainly for backward integration and to set up green field projects in Karnataka and Andhra Pradesh. The investment will be funded through debt, equity and internal accruals, added Nisha Purushothaman, joint managing director, Empee Distilleries. Purushothaman added, is setting up 60 KLPD grain based distrillery project at Sanga Reddy District in Andhra Pradesh for which necessary land has been purchased and orders for the supply and erection of plant and machineries have been placed with Praj Industries. All the necessary government approvals are in place and the project is expected to commission by June 2010. The company has also acquired a bottling unit in Karnataka and relocating the plant and machineries from Whitefield, Bangalore to Kolar in Karnataka. All the necessary statutory clearances have been obtained and the same is expected to be completed by end of the current fiscal. Nisha Purushothaman added, the group is planning to reenter into the beer market. The company is talking to international beer brands for the same. It may be recalled in 2002, the company sold its brewing assets to the UB Group. “We have appointed a consultant to study on the approach,” she added. The company is setting up a Brewery Unit with a capacity of 2.5 lakh Hecto Litres per annum expandable to five lakh Hecto Litres in Sanga Reddy, Andhra Pradesh for which land has been purchased and orders for the supply and erection of plant and machineries are being finalised. The project is expected to be completed in 2010. The company, through Appollo Alchobev, part of Empee Group, is setting up another unit in Tamil Nadu with a capacity of 5 lakh Hecto Litres and expandable to 7.50 lakh hector litres. She added, the company has also decided to commence its real estate project which was put on hold due to economy slow down. To start with the company is planning to develop a residential and commercial complex in a 8.5 acre land at Kuthambakkam, in Chennai. Of the total land 12 lakh sq.ft would be developed as residential targeting middle class people. The project cost would be around Rs 240 crore which will be funded through internal accruals and through pre-booking.Payday Advances commented:
Empee is really big group of companies and this investment is part of their strategy to make the company strong and diversify their business as well.
16.11.2011