Gujarat Foils plans Rs 6 bn expansion.

Gujarat Foils has signed a Memorandum of Understanding (MoU) with government of Gujarat for an Investment of Rs 6 billion. The MoU was signed by managing director, Vimal Kumar Somani during the Vibrant Gujarat Summit held on Jan. 13, 2009.

Gujarat Foils has already undertaken Rs 650 million expansion for world class aluminum foil plant out of the Rs 6 billion at Kalol in the state.

Subsequent to this expansion of Phase I, Gujarat Foils will have an additional capacity of 9,000 tons of Aluminum Foil to be manufactured out of world class Achenbach foil mill. Above 9,000 tons will be in addition to the existing operations of Gujarat Foils wherein installed capacity is already 3,400 tons. The company expects plant expansion to be completed by October 09. The first phase will be completed by using debt component from State Bank of India and Dena Bank, Mumbai.

The second phase of the work will be commissioned in year 2013 to 2014.

Shares of the company declined Rs 5.55, or 4.98%, to trade at Rs 106. The total volume of shares traded was 100 at the BSE (3.03 p.m., Friday).- MyIRIS