The Hindu Business Line : Natural Resources to expand capacity at 2 coke plants

NATURAL Resources Pte Ltd of Singapore, which has acquired the assets of Wellman Incandescent India Ltd through group company Energy Trading Company Pvt Ltd, has firmed up plans to expand the capacity of its two metallurgical coke manufacturing plants located at Kharagpur in West Bengal and Nergundi in Orissa.

The proposed expansion, which will entail an investment of Rs 10 crore, will take the manufacturing capacity of the two plants to 2,40,000 tonnes a year from 1,44,000 tonnes per annum currently.

In September this year, Energy Trading Company bought over the two coke units and one engineering unit located at Baltikuri, Howrah through official liquidators who were appointed for the purpose.

The acquisition cost the company around Rs 15 crore.

So far, Energy Trading Company has been engaged in trading in raw materials for the steel industry.

It imports coking coal from Australia, China and Indonesia through its Singapore parent and supplies it to steel manufacturers in India.

Speaking to Business Line, Dr B. Chatterjee, Managing Director of Natural Resources Pte Ltd and Director of Energy Trading Company, said that the two coke manufacturing units, which were closed at the time of their acquisition, would be operational by the end of this month.

The entire production from the Kharagpur plant, which will go up to 1,20,000 tonnes a year after the expansion, will be supplied to a major private sector steel company.

A five-year contract in this regard has been firmed up.

At current prices, this would translate into revenues of Rs 800 crore in the next five years.

Mr Chatterjee said that the revenue generated by the two coke manufacturing plants in the first 12 months of operations after the capacity expansion was expected to be of the order of Rs 300 crore.

According to him, no firm timeframe has been set for restarting of the company's engineering unit at Baltikuri on account of a dispute over land lease with West Bengal Small Industries Development Corporation Ltd, the lessor of the land on which the unit is located.

"The dispute pertains to lease rentals that has not been paid by the erstwhile owner of the unit.

"We have taken up the matter with the authorities concerned and hope to resolve the issue soon," Mr Chatterjee said.

More Stories on : Mergers & Acquisitions | Coke & Metalurgical Coke

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