Vikas WSP announces Rs900 cr investment plan for Rajasthan, Gujarat

PTI

Mumbai: Vikas WSP Ltd, a leading player in guar gum manufacturing (pulvarized) and its derivatives, has drawn up a Rs900 crore capex for its expansion drive.

“We are implementing three new projects involving a capital outlay of ₹ 00 crore in Rajasthan and Gujarat and acquiring land worth ₹ 00 crore for organic farming,” Vikas WSP’s managing director, B D Agarwal, told reporters here today.

The company is setting up a Rs377 crore guar derivatives project at Baroda in Gujarat which is expected to be operational by FY’11.

It is also setting up a Rs202 crore organic products unit at Bikaner in Rajathan. The commercial production is expected to start by FY’10, Agarwal said.

The third unit for guar polymers for food at an capital outlay of Rs52 crore is coming up at the Agro Food Park, at Sriganganagar in Rajasthan. It will be operational by FY’10.

The proposed projects are expected to be financed through internal accruals to the tune of Rs300 crore over the next three years and private placements to FIIs. The company has already raised Rs225 crore through preferential allotment, Agarwal said.

The company’s production capacity will go up from 46,200 tonnes to 70,000 tonnes per annum by FY’11, Agarwal added.

India produces 90% of guar production in the world, while the demand of guar polymers is increasing at 15% CAGR.