KIS to acquire coal assets in Indonesia

MUMBAI: Knowledge Infrastructure Systems (KIS), a coal trading firm, on Sunday said it has initiated talks with Indonesian miners to acquire small and medium-sized coal assets for supplying the fuel to companies in India.

The five-year old unlisted Delhi-based company, led by Rahul Bhandare, imported six million tonnes of coal last year to serve its clients in the country, including the Tatas.

"We are looking for coal assets abroad to ensure steady supply of coal to our customers and to offset the fluctuations of price in the international market," Bhandare said.

Having a coal mine also helps the company to enhance its reliability among customers, he said, but declined to give any time-frame to snap up the target.

Indian power utilities, steel and cement companies are finding it increasingly difficult to acquire coal mines in Indonesia, Mozambique and Australia as prices are rising.

There are very few assets on sale in these countries, but many takers. This factor is also fuelling the prices to go up.

KIS recently tied-up with Athena Energy Ventures to supply coal for its 1,200 MW Vizag plant.

Meanwhile, buoyed by escalating coal prices, KIS aims to clock Rs 1,600 crore turnover this fiscal, up from Rs 600 crore in the previous fiscal.

"Coal prices have gone up significantly. Even as we target to bring around six million tonnes of coal this fiscal, our turnover should go up to Rs 1,600 crore," Bhandare said.

To a question, Bhandare said he had no intention to list KIS on stock exchanges at present.