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Kohinoor Mandal

Rourkela , March 3

THE Orissa-based OCL India Ltd, producer of the Konark brand cement, is setting up its first integrated steel plant of 0.25 million tonnes per annum capacity.

The company singed a memorandum of understanding (MoU) with the Orissa Government in November last year. The total cost of the project is Rs 204 crore, and would be funded through debt and internal accruals.

According to Mr V.P. Sood, Executive Director of OCL India, the company has applied to the Orissa Government for mining leases for coal and iron ore blocks. Construction work for the proposed steel plant has started. "We would build the steel plant in phases, which could take five years. We are hoping to reach the final capacity by 2009, and would have railway sidings too. We have asked for coal blocks both for the steel unit and cement operations," Mr Sood told Business Line.

OCL's total cement capacity is 1.3 m.t. per annum. The company is a major refractory manufacturer with an annual capacity of 80,000 tonnes. The company has a sponge iron unit too, with a capacity of 1.2-lakh tonnes per annum.

For the year ended March 31, 2004, OCL's turnover was Rs 394.56 crore and net profit at Rs 22.60 crore. In the current financial year, the company is expecting to take its turnover to around Rs 450 crore.

On the targeted net profit in the current financial year, Mr Sood said, "It would not be fair on my part to comment on this, as we have already published the results of the first three quarters. Let us wait for the year to end."

The company is promoted by the Delhi-based Dalmias. In 2004, OCL celebrated its diamond jubilee year. The company's activities are located in Rajgangpur, near Rourkela. The steel unit is also coming up in this region.

It is also learnt that OCL is planning to increase its cement production from the existing 1.3 m.t. per annum to two m.t. per annum. For this, the company would be increasing the capacity of its clinker production too. Mr Sood, however, preferred not to make any comment on this.

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