Business Daily from THE HINDU group of publications
Tuesday, Aug 28, 2007
ePaper


News
Features
Stocks
Cross Currency
Shipping
Archives
Google

Group Sites

Corporate - Diversification
Bhushan Steel plans 2 power plants

In talks with Orissa Govt for getting 3,500 acres more

S. Shanker

Mumbai, Aug. 27 Delhi-based Bhushan Steel and Strips Ltd is planning a four-fold expansion from its present capacity of one million tonnes in the next five years.

The project, which will include two power plants, will entail an investment of over Rs 15,000 crore in 10 years.

The company now has two steel plants in Sahibabad (Uttar Pradesh) and Khopoli (Maharashtra), which together produce over one million tonnes per annum.

It has recently begun making value-added products such as galume (zinc and aluminium coated) and colour coated sheets. The company makes galvanised sheets, coils, and corrugated sheets.

Power plant plans

As part of its total integration of the steel value chain, Bhushan Steel is in the process of setting up a power plant and an advanced hot rolling plant on 1,618 acres at Angul, Orissa, at a cost of 5,200 crore.

It is also in talks with the State Government for the allotment of additional 3,500 acres to enable it to triple the planned capacity of 2.2 million tonnes (mt) in about five years. “The Angul plant has started producing 110 MW, sponge iron and billets. And, production is close to 0.5 million tonnes,” said Mr Nittin Johari, Chief Financial Officer.

A 77-MW power plant that will be used internally as well as to sell electricity has been commissioned. Post-completion of this backward integration project, Bhushan Steel will become an integrated steel company.

The company has also zeroed in on Kharagpur (West Bengal) for another power and steel plant and in talks with the State for allocation of about 4,000 acres.

While the steel unit will have capacity of 2 mt, the power plant will have a capacity of 1,000 MW. This project is expected to warrant an investment of Rs 10,000 crore.

“There has to be a debt/equity mix but we have not yet finalised as it is a little too early now,” Mr Johari said.

Public issue

With the power plants calling for substantial investment, Bhushan Energy under which the power plants would be coming up, would tap the capital market next year for raising funds, he added.

With expansion plans in place, the company is scouting for mining opportunities abroad, more specifically in Australia and Mozambique.

It has recently tied up with Bowen Energy Ltd of Australia for supply of coal to the Orissa plant, by picking up a 15 per cent stake.

For the 2006-07 fiscal, the company reported sales of Rs 3,837.73 crore and net profit of Rs 313 crore. About 35 per cent of its turnover is through exports.

More Stories on : Diversification | Steel | Power

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



Stories in this Section
Nicholas Piramal to take up research unit revamp at board meet


ONGC detects thefts in its AP pipelines
Gati pact with KIL shareholders
Virinchi board nod to raise $20 m
McNally Bharat bags crane order
Toyota launches training programme in Pune
S&P downgrades Tata Power bonds rating
L&T Capital invests Rs 100 cr for Rangsons stake
Punjab Chemicals buys Dutch firm for Rs 225 cr
Oberoi Group plans 60% capacity expansion in 5 years
Payment details of Singur car unit produced before Bench
JK Paper sees new plant adding Rs 300 cr to topline
TitleMatch to ‘screen’ UTV movies in US
Taiwan’s machinery industry seeks tie-ups with Indian SMEs
‘Without SME, India’s growth story will not happen’
Bhushan Steel plans 2 power plants
Swaraj Mazda rights issue may intensify boardroom battle
Debate over Reliance’s gas pricing from KG basin rages on
‘India may emerge as regional petrochem hub’
HM sees positive growth in auto components biz
Fortis looks at pan-India expansion
Seaways Shipping plans Rs 250-cr expansion
TVS to focus on retail expansion
Hyundai ramping up dealership network
Norit eyeing desalination, water purification projects
Karl Slym to head GM India


The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | The Hindu ePaper | Business Line | Business Line ePaper | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2007, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line