News @ Jains - Board approved for Revenue Budget and Capital Expenditure plan for 06-07

The Board of Directors of the Company has met today at Jalgaon and discussed, approved the revenue budget and capital expenditure plan for FY 2006-07

This has been done in light of exponential growth in various divisions and conducive external environment including support of Government of India for irrigation infrastructure and food processing.

The total requirement for capital expenditure and investment is estimated at approx Rs.225 Crores. The money would be utilized for expansion of capacities as follows.

Post implementation, JISL will have built global capacities in each of its business lines allowing itself to be a leader in India and amongst first 3 to 5 players in the world.

This expansion will be implemented over next 12 months and most of new capacities will be in place by September 2006 i.e. before busy season of FY 2006-07.

The Board has authorized the Managing Director to explore and finalize various options of
raising funds including by means of loans, bonds, convertible bonds or otherwise.

The Board has also recommended to shareholders increase in FII limits from present 49% to 60% of Equity Share Capital.

The Board of Directors have appointed Mrs. Radhika Pereira as independent Director in casual vacancy existing in the Board.

The Board has convened an EOGM at Jalgaon on Tuesday, 31st January 2006 to consider various matters requiring shareholders approval. The Notice and Explanatory Statement shall be sent in due course of time to the Exchange.