Adhunik Metaliks to sell stake in mining arm to PE funds
Adhunik Metaliks, which manufactures speciality steels for the auto industry, is in talks with a clutch of private equity (PE) players to offload 10-11% in a fully-owned subsidiary, Orissa Manganese & Minerals (OMML). Adhunik had acquired OMML abo...
By TNN |
KOLKATA: Adhunik Metaliks, which manufactures speciality steels for the auto industry, is in talks with a clutch of private equity (PE) players to offload 10-11% in a fully-owned subsidiary, Orissa Manganese & Minerals (OMML). Adhunik had acquired OMML about a year ago for around Rs 60 crore.
���We will be in a position to finalise the PE investor in OMML within a month. A number of them are keen to pick up stakes since the company has six manganese mines and one iron-ore mine,��� Adhunik Metaliks MD Manoj K Agarwal told reporters on Thursday.
OMML���s iron-ore mine at Ghatkuri in Jharkhand holds reserves of nearly 80 mt with high ���Fe��� content of above 63%. It is located close to the Chiria mines in Jharkhand, estimated to hold the world���s second largest reserves of high quality iron ore.
���We hope to mine around 1 mt from the Ghatkutri mines, which will be operational in first quarter of 2008-09,��� Mr Agarwal said.
The output from manganese mines would be used by Adhunik Metaliks for captive use in ferro alloys production.
Adhunik Metaliks has also firmed up a Rs 422 crore investment plan aimed at expanding capacity at its existing ferro alloys and speciality steels unit, reducing cost and improving productivity.
���An essential part of the plan involves reduction in raw material costs from 80% to 40% of total production costs. This will lead to much better profitability in the coming years,��� Mr Agarwal added.
The plan will be implemented over a number of projects, which include, hike in sponge iron making capacity to 3.15 lakh tonne per annum, adding a captive power plant of 17 mw, setting up a sinter plant with 2.67 lakh tonne capacity, hiking ferro alloys capacity by 19,300 tonnes to 60,000 tonne and a lime calcination plant and adding two private railway sidings. These projects are likely to be over by October 2009..
���We will be in a position to finalise the PE investor in OMML within a month. A number of them are keen to pick up stakes since the company has six manganese mines and one iron-ore mine,��� Adhunik Metaliks MD Manoj K Agarwal told reporters on Thursday.
OMML���s iron-ore mine at Ghatkuri in Jharkhand holds reserves of nearly 80 mt with high ���Fe��� content of above 63%. It is located close to the Chiria mines in Jharkhand, estimated to hold the world���s second largest reserves of high quality iron ore.
���We hope to mine around 1 mt from the Ghatkutri mines, which will be operational in first quarter of 2008-09,��� Mr Agarwal said.
The output from manganese mines would be used by Adhunik Metaliks for captive use in ferro alloys production.
Adhunik Metaliks has also firmed up a Rs 422 crore investment plan aimed at expanding capacity at its existing ferro alloys and speciality steels unit, reducing cost and improving productivity.
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���An essential part of the plan involves reduction in raw material costs from 80% to 40% of total production costs. This will lead to much better profitability in the coming years,��� Mr Agarwal added.
The plan will be implemented over a number of projects, which include, hike in sponge iron making capacity to 3.15 lakh tonne per annum, adding a captive power plant of 17 mw, setting up a sinter plant with 2.67 lakh tonne capacity, hiking ferro alloys capacity by 19,300 tonnes to 60,000 tonne and a lime calcination plant and adding two private railway sidings. These projects are likely to be over by October 2009..
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