Hinduja Foundries Limited, (formerly Ennore Foundries), the foundry arm of Hinduja Group, has informed that the company will invest Rs 350 crore to increase its production capacity to 226,000 tons in the next two to three years.

The company revealed that it would set up a Greenfield unit at Hyderabad at a cost of Rs 150 crore.

Apart from this, the company would also set up a low pressure aluminium dye casting unit with a production capacity of 5,000 tonnes at Sriperumbudur with an investment of Rs 50 crore, which will begin commercial production of castings during the year.

The company would also invest Rs 30 crore on expansion of the capacity of its Sriperumbudur plant from 55,000 tonnes to 72,000 tonnes.

The Company has successfully completed the issue of GDRs amounting to US$ 15M during April 2008.

In a separate release, company's board has proposed 20 percent dividend for the year 2007-08. The company will pay equity dividend after a gap of 10 years. It was in
1996-97 the company paid dividend to its equity shareholders.

The company has registered 14% growth in turnover during 2007-08 to Rs 451.42 crore as compared to Rs 395.24 crore in 2006-07. It had posted a profit of Rs 6.66 crore on net sales of Rs 109 crore for the same period last year.