Regency Group is expanding the capacity for ceramics at its units at Karaikal and Yanam in Pondicherry. The group is also planning to develop captive power plants.

The capacity of Regency Ceramics’ unit at Yanam is being raised from 28,000 m² per day to 49,000 m² per day and that of Regma Ceramics’ unit at Karaikal from 6,000 m² per day to 20,000 m² per day. The projects are estimated to entail an investment of Rs.70 crore and Rs.45 crore, respectively.

The expansion at Regma is scheduled for completion in December 2003 while the expansion of Regency, in February 2004.

Regency Group is also diversifying into power generation. The group has promoted a company, ‘Regency Power Corporation’ to implement 2 gas based power projects at its manufacturing facilities.

A 70 MW power plant is planned at Karaikal with an investment of Rs.250 crore. The Union Ministry of Petroleum & Natural Gas has allocated 2.75 lakh standard cubic metres per day (SCMD) of gas from the Cauvery basin. About 30 acres of land has already been acquired and financial closure is expected to be achieved within the next 3-4 months.

Nearly 50 per cent of the generated electricity will be consumed captively while the remaining will be fed to the Pondicherry grid under a power purchase agreement to be concluded shortly. The company is also seeking state government approval for third party sales.

Regency has also mooted a proposal to develop a 25 MW power project at Yanam with an outlay of Rs.100 crore. The company is awaiting allocation of 1.25 lakh SDMD of gas from the Krishna-Godavari basin.