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Godrej Ind plans to invest in UK co

Our Bureau

MUMBAI, July 6

GODREJ Industries Ltd, formerly Godrej Soaps Ltd, has announced plans to invest up to Rs 1 crore in the UK-based Compass Connections Ltd.

The company is seeking shareholders' approval to make this investment at its annual general meeting on July 28.

The approval is for investing up to Rs 1 crore in picking up an equity stake in the UK-based information technology service company. Compass Connections is involved in outsourcing, backoffice operations and IT enabled services.

According to Godrej Industries, fund requirement for this investment will be met through a combination of internal accruals and borrowings.

Godrej Soaps was demerged into two entities - Godrej Industries and Godrej Consumer Products. The demerger came into effect on April 1, 2001.

The company expects improved profitability in the current fiscal accruing out of lower interest charges. During the previous fiscal, the company's debt was reduced to Rs 262.5 crore from Rs 342.6 crore. ``Good operating profits helped the company to achi eve this debt reduction. This will in turn help improve profitability in future by lower interest charges,'' the company said in its annual report.

Godrej Agrovet Ltd, a subsidiary of Godrej Industries, plans to augment its shrimp feed production capacity and is setting up a new plant for shrimp feed manufacturing at Chennai. According to the company, prospects in the shrimp industry appear good.

However, Godrej Agrovet reported a decline in its profit after tax at Rs 3.2 crore (Rs 4.1 crore) on a total income of Rs 370.7 crore (Rs 336.1 crore).