JUNE 26, 2009 -- Sterlite Technologies Limited (search Lightwave for Sterlite Technologies), a global provider of transmission products for the telecom and power industries, today announced that its Board of Directors has approved the enhancement of the company's optical fiber annual manufacturing capacity to 20 million km, which would position Sterlite amongst the top three manufacturers globally.
Sterlite's current facility of 6 million km is already under expansion to 12 million km, which would be established in the current fiscal year. The enhanced capacity of 20 million km that will be functional by 2011, requires a capex outlay of Rs 250 Crores (US$52 million).
The expanded facility would be capable of manufacturing the company's existing range of optical fiber products, as well as the capability to manufacture new products that would cater to high-bandwidth applications required by global markets. The expansion will be made by through a combination of brownfield expansion at the company's existing facility in Aurangabad, India, and a greenfield setup at a location to be finalized.
Partly toward meeting the cost of this project, Sterlite's board also approved the issue of up to 73,00,000 warrants on preferential basis to the promoters and entity/entities of promoter group, at a price to be determined in accordance with the Guidelines for Preferential Issues' contained in Chapter XIII of the Securities and Exchange Board of India (Disclosure and Investor Protection) Guidelines 2000, entitling the warrant holders to apply for equivalent number of fully paid equity shares of the company subject to approval of the shareholders at the General Meeting of the Company and other necessary statutory approvals. Each warrant will be convertible in one equity share of Rs 5 each within a period of 18 months from the date of allotment. The proceeds of such warrants, as converted, would be used toward these growth projects and for general corporate purposes.
Says Anand Agarwal, chief executive officer and director at Sterlite Technologies, "Sterlite continues to be bullish on the optical fiber industry in Asia and globally. We would continue to leverage our global customer relationships and global presence, as well as the unique knowledge, expertise, and infrastructural base created over the past 15 years in this business, to enhance our global market share in the growing optical fiber market."