The Hindu Business Line : KIC Metaliks to set up billet, coke oven plants

KIC Metaliks Ltd, a producer of pig iron and castings having its manufacturing facility at Durgapur, on Tuesday announced backward and forward integration projects that entail an aggregate capital expenditure of Rs 108.05 crore.

According to Mr R.K. Kajaria, Chairman and Managing Director of KIC Metaliks Ltd, as part of the integration projects, a 1,50,000-tonnes-per-annum (tpa) billet plant, a 1,44,000-tpa-coke oven plant and a 1,00,000-tpa-sponge iron plant would be set up.

A hot stove and a 4 MW capacity captive power plant would also be set up.

The proposed power plant will have zero fuel cost as waste gases from the mini blast furnace would be used to generate power.

The annual savings on account of the captive power plant would be Rs 7 crore.

Speaking to newspersons here, Mr Kajaria said work on the coke oven plant would be for conversion of coking coal to met coke. Savings would accrue with less dependence on high-cost, imported met coke. This was estimated to result in savings of Rs 3,000 per tonne. Similarly, with the installation of the hot stove, the annual consumption of met coke would go down by 8,000 tonnes. This would translate into a saving of Rs 10.4 crore annually.

Mr Kajaria said the integration projects would be funded by term loans and a public issue of Rs 58.05 crore. The issue was likely to hit the market in April-May this year. The premium to be charged on the shares is yet to be finalised. A preferential allotment of 7,00,000 equity shares of Rs 10 each at a premium of Rs 70 has been approved by the company's board of directors in favour of its promoters and their associates.

A total of Rs 10 crore would be raised from the company's promoters and their associates through preferential allotment in tranches.

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