Calcutta, 31 May 2006
La Opala RG Limited, a city-based premium glassware company, has selected Uttaranchal for its second plant.
The plant, which will start operations by February 2007, would come up at the Eledeco Sidcul Industrial Park in Sitarganj. To be built at an investment of Rs 35 crore, the plant will have a capacity of 4,000 tonnes.
“We wanted to set it up in Bengal and had looked at land in Durgapur. We also considered Jammu and Kashmir and Himachal Pradesh, besides Uttaranchal and Bengal. However, incentives like income tax exemption for five years and 30 per cent exemption for the next five and excise exemption for 10 years in Uttaranchal were too attractive to let go,” said Sushil Jhunjhunwala, managing director of La Opala.
The company will fund the project through a mix of internal accruals and equity expansion.
The free reserve of Rs 27.63 crore would mostly be ploughed back into existing operations as the company, though debt free, has a small capital base of Rs 5.3 crore, Jhunjhunwala said.
The electricity rates are also cheaper in Uttaranchal, he added.
The company has a factory at Madhavpur in Jharkhand that can produce 3,500 tonnes of opalware and 1,600 tonnes of crystalware.
News Source: http://www.telegraphindia.com
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