Financial Daily from THE HINDU group of publications
Thursday, Nov 24, 2005
Financial Daily from THE HINDU group of publications Thursday, Nov 24, 2005 |
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Corporate
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Mergers & Acquisitions Kanishk Steel buys Italian plant, to relocate unit in TN M. Ramesh
Chennai , Nov. 23 KANISHK Steel Industries Ltd has purchased an 8-year-old 1.5-lakh tonnes steel re-rolling plant from Lamifer of Italy. The company plans to relocate it to India and set it up at Mayiladuthurai in Tamil Nadu, its Chairman and Managing Director, Mr Ravi Gupta, told Business Line. At Mayiladuthurai Kanishk Steel already has a billet plant, whose production will go into steel making. In addition, the OPG group, to which Kanishk belongs, also has an 18 MW gas-based power project. The power plant, which was commissioned in March 2004, sells about 10 MW of surplus power to the grid. Kanishk paid the Italian company Rs 16 crore for the plant, but the total cost of the project works out to Rs 52 crore. Mr Arvind Gupta, member of the promoter family and Managing Director of OPG Energy Pvt Ltd, a subsidiary of Kanishk Steel, said that the project would be completed by October 2006. Kanishk Steel is also setting up a 10-MW waste heat recovery project at its plant at Gummidipoondi, near Chennai, where it produces 60,000 tonnes of sponge iron. The cost of the project is Rs 42 crore, Mr Gupta said. In the first six months of the current year, Kanishk Steel achieved a turnover of Rs 118 crore and a net profit of Rs 3 crore, compared with turnover of Rs 88 crore and net profit of Rs 1.2 crore in the first half of last year. In the first full year of operations after commissioning of the new project, Kanishk Steel's turnover would be in the region of Rs 350 crore, Mr Gupta said.
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