La Opala: INR 350 million plant for Uttaranchal

Indian glassware company La Opala RG is looking for INR 1 billion turnover within the next three years. To achieve its targets, the firm plans to increase capacity with a INR 3.5 million (USD 7.6 mill…

Indian glassware company La Opala RG is looking for INR 1 billion turnover within the next three years. To achieve its targets, the firm plans to increase capacity with a INR 3.5 million (USD 7.6 million) new production facility in Uttaranchal. Announcing the financial results for 2005-06, managing director Sushil Jhunjhunwala said the capacity of the new plant would be 4,000 tonnes per annum compared with the 3,500-tonnes capacity of its existing plant in Jharkhand. “Though the details of the financial plan are yet to be worked out, we expect to generate about INR 150 million through internal accruals. The balance [of] INR 200 million will be raised through a mix of debt and equity”, said Ajit Jhunjhunwala, deputy managing director. To achieve its INR 1 billion target, the company expects to generate around INR 700-800 million from its La Opala brand of glass tableware. Solitaire, its 24% lead crystal brand, is expected to contribute another INR 200-250 million. La Opala, which saw a turnover of INR 110 million from exports to over 20 countries including the US, the UK and France for fiscal year 2006, is looking at 50% export growth. Plans are also afoot to open around 10 exclusive outlets in 2006 through franchising. La Opala RG has reported a 53.6% growth in profit after tax to INR 43 million for fiscal year 2006 against INR 28 million in the previous financial year. The company“s total revenue rose to INR 460 million against INR 443 million in the previous fiscal year. The board of directors has recommended a dividend of 22.5% compared to 17.5% in the previous year.