Haldia Petro buys out L&T stake in JV for Rs 180 cr

KOLKATA: Haldia Petrochemicals (HPL) has acquired Larsen & Toubro���s (L&T���s) 51% stake in HPL Cogeneration (HPLCL) at a consideration of Rs 180 crore.

A 51:49 joint venture between L&T and HPL, HPLCL runs a 116 mw power station at Haldia. The Rs 5,170-crore petrochem company has acquired L&T���s stake in an all-cash deal.

At present, HPLCL supplies power and steam to run HPL���s naphtha cracker plant and its associated units. Post-acquisition, HPLCL becomes a 100% subsidiary of HPL.

Addressing a press conference, HPL MD Swapan Bhowmik said, ���HPLCL, a profitable entity, was set up in June 1998 with installed capacity of 116 mw. After having worked for nearly 10 years in a JV with L&T, HPL is taking over full ownership of the company.

���With this buyout, HPL will further boost it profitability through operational synergy between HPL and HPLCL. The acquisition becomes effective from May 6, 2008.���

HPLCL���s turnover and net profit stood at Rs 133 crore and Rs 76 crore, respectively, in 2007-08. Consequent to this buyout, HPL sees many possibilities to boost its performance.

���It would be wellplaced to optimise energy balance of the entire HPL complex and improve the overall efficiency of energy generation and utilisation,��� said Mr Bhowmik.