A North American unit of Tata Chemicals plans to raise $375 million (around R1,690 crore) via bonds and term loans by the middle of July to support various expansion projects of the company. Tata Chemicals is also looking to raise $145 million (around R 650 crore) through foreign currency loans to support its expansion plan at Gabon in Africa, PK Ghose, chief financial officer, told a news conference. The Tata group company had recently said that it is buying a 25.1% stake in phase I of the fertiliser complex in Gabon for $290 million.

The complex will have a production capacity of 1.3 million tonne per annum and is being set up through a joint venture between Singaporean commodities group Olam International and the Gabon government. ?Financial markets are at their best at this moment (for fund raising)…and this is for various projects of the company,? Ghose said. The company?s net debt as on March 31 stood at about R4,400 crore, he said.

Meanwhile, Tata Chemicals posted a net profit increase of 14% at R146 crore for the March ending quarter as against R128 crore it posted in the corresponding quarter of financial year 2009-10. Sales for the quarter also grew 16% at R2,658 crore as against R2,291 crore.

For financial year 2010-11, the company has posted an 8% increase in its net profit at R 653 crore as against R606 crore. Sales have also grown 16% at R 11,060 crore compared to R9,544 crore. Shares of the company plunged 3.11% to close the day at R350.90 on the BSE on Monday.

While inorganic chemicals business contributed R2,051.76 crore to the revenues during the year, fertilisers contributed R4,044.50 crore. Revenues from the agri input vertical contributed R125,20 crore and other business made up R35 crore to the overall revenues. R Mukundan, managing director, said,

?Our chemical business has done well on the back of enhanced operations, increased volumes and stable margins.? Our consumer business also continues to perform very strongly.?

Going forward, the company expects its fertiliser business to be under pressure in the current financial year due to higher international prices and rising input costs.