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Ambarish Mukherjee

The company has already started lifting coal from its captive mine and is planning to meet its total requirement of coal through captive mining from January onwards.

New Delhi , Dec. 2

HAVING launched the largest underground captive coalmine in the private sector, Monnet Ispat Ltd is now planning to move ahead in its backward integration process.

The company is actively looking at acquiring a manganese ore mine abroad and trying to emerge as a mineral and metal company with complete process integration.

According to sources, the acquisition may take place before the end of the current financial year as talks with a couple of companies are already at an advanced stage.

The company has already started lifting coal from its captive mine and is planning to meet its total requirement of coal through captive mining from January onwards.

As of now, the company sources a part of its coal requirement from Coal India Ltd (CIL) while around 50 per cent of its needs are met through captive mining.

"Captive mining would bring down our cost of coal to Rs 500 per tonne as compared to Rs 1,500 at which we had been buying from CIL. This alone would result in an annual saving of around Rs 45 crore that will add to our bottomline," the company Vice-Chairman and Managing Director, Mr Sandeep Jajodia, told Business Line.

Mr Jajodia said that the company is expecting a turnover of more than Rs 600 crore for the current financial year.

"This year, we would be having a turnover of more that Rs 600 crore and if all our plans move ahead smoothly, then during 2005-06 we would have a turnover of around Rs 750 crore," Mr Jajodia said.

He also said that in 2006-07, there could be a quantum jump when the greenfield project that is coming up in Raigad goes on stream. "The additional five lakh tonne capacity in Raigad plant would straight away account for an additional Rs 500-crore turnover," he said.

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