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Gujarat NRE raises turnover target to Rs 180 crore

Ambar Singh Roy

Kolkata , July 17

GUJARAT NRE Coke Ltd (GNCL) has revised its turnover target to Rs 180 crore for the accounting year ending September 30, 2003, from Rs140 crore earlier.

In the nine months ended June 30, 2003, the low ash metallurgical coke manufacturing company has recorded a turnover of Rs 133 crore, according to Mr Arun Kumar Jagatramka, Managing Director of Gujarat NRE Coke Ltd. In the accounting year ended September 30, 2002, Gujarat NRE Coke Ltd had registered a turnover of Rs 98 crore.

Mr Jagatramka told Business Line that the company has proposed to merge Gujarat NRE Power Ltd with GNCL. Consequent upon the merger, GNCL will have a manufacturing capacity of 2.08 lakh tonnes per annum. Along with a sister company Aparna Projects Pvt Ltd, Gujarat NRE Group will have a capacity to manufacture low ash metallurgical coke of over three lakh tonnes per annum.

According to Mr Jagatramka, the idea now was to consolidate the business and firm up plans to diversify into a power-intensive activity using the waste heat that is generated at the company's existing plant at Jamnagar, Gujarat.

"Today we consume 0.5 mw of power per annum and our energy bill is around Rs 1 crore. We are paying power at the rate of Rs 5.50 per unit. If we are able to produce power from the waste heat that we generate, our cost of production will be 40 paise per unit. With the waste heat that we generate, we can produce six mw of power. The proposed power project is going to cost us Rs 30-35 crore and we are going to use the power for manufacture of industrial oxygen or liquid nitrogen," he said. The proposed power project may be commissioned by September 2004.

GNCL has a subscribed equity base of Rs 26 crore while the equity base of Gujarat NRE Power Ltd is Rs 3.6 crore. The merger ratio has been fixed at 3:10 i.e. three equity shares of Gujarat NRE Coke Ltd for every 10 equity shares of Gujarat NRE Power Ltd held.

Gujarat NRE Coke imports coking coal from Australia and is the largest non-captive producer of low ash metallurgical coke in the country. It clients include foundries and all the five soda ash manufacturers in the country — Tata Chemicals, Nirma, Gujarat Heavy Chemicals, Saurashtra Chemicals and DCW Ltd.

The total consumption of coke in the country is stated to be around 20 million tonnes per annum.

Of this, about 12 million is manufactured by the steel plants for their captive use.

The balance is manufactured by companies such as Gujarat NRE Coke, Sesa Industrial and small companies that are located around the Dhanbad belt, among others, according to Mr Jagatramka.

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