The Hindu Business Line : FCI Aravali hopes to get mining leases for gypsum

“We have applied for the licences for five new mines for the exploration of gypsum and the applications are in different stages of obtaining necessary clearances. Currently, the company has 14 mines located in Rajasthan,” Mr Sunil Dayal, Chairman and Managing Director, FAGMIL, said here.

For the financial year ended March 31, 2007, the company sold 8.96 lakh tonnes (lt) of mineral gypsum, and by the end of the current fiscal it expects to mine around 9.15 lt. It plans to invest around Rs 10 crore in the various expansion programmes and the funds would be raised from internal accruals.

FAGMIL also plans to diversify into exploration of other minerals such as phosphate and SMS grade limestone in the next couple of years.

“As securing mining rights is a long process which involves getting clearances from a number of departments we expect to get into these areas in the next two to three years,” Mr Dayal said.

Turnover may grow

He added that during the current fiscal, its turnover is expected to grow by around 12 per cent compared to last year.

“The rise in the turnover will be mainly because of additional supplies to the agriculture sector. As against 10 per cent of our production supplied to the agriculture sector earlier, this year we expect it to be between 25 per cent to 30 per cent, and this will be the main driver for the rise in the revenues,” Mr Dayal said.

FAGMIL currently has a 21 per cent market share in the overall gypsum market but in the agri-grade product it has more than 50 per cent.

Apart from the agriculture sector, it also supplies gypsum to the cement and POP industries.

Last week, the company had presented a dividend cheque of Rs 1,46,59,600 to the Government for 2006-07. The cheque was received by the Minister for Steel, Chemicals and Fertilisers, Mr Ram Vilas Paswan.