The Hindu Business Line : BOC India to explore opportunities in petrochem

Even as the process of Linde AG's takeover of the BOC Group Plc of the UK is expected to be over by September 2006, BOC India Ltd has begun to pursue opportunities in sectors such as petrochemicals, glass, chemicals and refining.

The company is in talks with a petrochemicals major for a big order, which is expected to be closed by the client by third quarter of 2006, Mr E.R. Raj Narayanan, Managing Director of BOC India Ltd, told newspersons after the conclusion of the company's 70th annual general meeting held here on Wednesday. He said talks with the prospective client were "beyond the exploratory stage".

Mr Narayanan said the steel industry currently accounts for 60 per cent of BOC India's turnover. "If we are to reach the targeted 100 million tonnes of steel capacity by 2020, the steel industry is going to be a major driver of growth for the gas industry as well," he said.

Linde's strong technology support would provide a fillip to BOC India's strong commercial practices in the gas industry.

He said taking up large projects were crucial to BOC India's long-term growth plans.

Under a new contract signed with JSW Steel Ltd, the company will supply 3,000 tonnes of gaseous oxygen, nitrogen and argon per day to the JSW Steel plant at Bellary.

The on-site project is estimated to entail an investment of Rs 350-400 crore. Most of the investments in the pipeline would be funded through internal accruals and debt, he said.

First Quarter

On the company's performance in the first quarter of the current fiscal, Mr Narayanan said it was "reasonably okay" despite a nine-day shutdown at the company's Jamshedpur plant. During April-June 2006, the company's gross sales at Rs 118.84 crore were higher by six per cent over the corresponding period of the previous year. The net profit for the quarter more than doubled after taking into account an extraordinary earning of Rs 24.29 crore arising from the sale of the company's immoveable asset in Chennai. On its operations in 2005-06, BOC India Ltd declared a dividend of 30 per cent (Rs 3 on each share of the face value of Rs 10 each).

More Stories on : Outlook | Petrochemicals

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page