The Hindu Business Line : Growing Indian buzz

Earlier this week, Mr Pankaj Oswal of the Oswal Group drew the attention of the Australian market with his offer to offload stakes in his Burrup Fertilisers. Mr Oswal is likely to end up gaining $200 million from the float, which will also see his stake in the fertiliser firm coming down to a little over 50 per cent.

Then came the news of Mr L.N. Mittal picking up stake in Macarthur coal. This happened after Mr Mittal bought 16 per cent stake in the Perth-based Coal of Africa.

Earlier this month, the Bangalore-based Mineral Resources Ltd bought 50 per cent stake in Lincoln Minerals in South Australia.

Indian corporates are drawing respect from the Australian counterparts; in certain parts their presence is seen as one that could counter the growing influence of the Chinese.

Gujarat NRE Coke has gained in strength ever since it picked up a stake in a closed mine and has turned it around. It is set to help another coal mine reap profits, while it has also taken up a third mine.

“Gujarat NRE’s reputation has gone up considerably that it is first being sounded over takeover of any coal mine in Australia,” said sources in the Indian community.

FIRST FORAY

Indian firms’ foray into Australia began with Aditya Birla Minerals, in which Hindalco holds 51 per cent stake, getting into copper mining. It now exports copper to India. Last August, Bhusan Steel signed up a deal with Queensland’s Bower Energy as its Australian coal exploration company.

And Tata Steel has aligned with Riversdale Mining to explore coal in Mozambique’s Tete region.

Investment by Indian companies in Australia doubled in 2006 to $2.2 billion from $1.1 billion in 2005. Compared with this, Chinese investment in 2006 was $3 billion. — M.R.S.