Chinese co plans big-bang India investment
Xinxing Group enters into joint venture with local companies for Rs 8,000 crore steel unit in Karnataka.
By TNN |
BANGALORE: China���s largest investment in India is slated to come up in Karnataka with the setting up of Xindia Steels, a joint venture between the $11-billion Xinxing Group (Shanghai Exchange-listed), China National Metal Products (part of China Minmetals), Manasara Investments and the Kelachandra Group, along with Sigma Minmet. The total investment is expected to be over Rs 8,000 crore over 5-10 years.
Xindia Steels intends to put up, at a cost of Rs 400 crore in the first phase, a 2-million tonne iron pelletisation project at Koppal in Karnataka. According to Gopi Ramanathan, director, Xindia Steels, the company has acquired Hampi Steel, whose iron ore project had been approved by the Karnataka government high-level committee three years ago, but the project had not taken off.
Mr Ramanathan said that as a part of the second phase, a further investment of Rs 8,335 crore would be made to increase the pelletisation capacity, and a steel plant of 2.5-million tonne is being set up. According to him, the demand for steel is projected to touch 200 mt by 2020 and the project would cater to both the domestic and international markets.
Mr Ramanathan said the first phase would take 13 months to build. The average sales in phase I are expected at Rs 1,000 crore with a net profit of around Rs 86 crore, rising to Rs 8,750 crore in phase II and a net profit of Rs 800 crore. By the time phase II gets operational, the company hopes to provide direct employment to 4,800 people and indirect employment to some 10,000 people. The promoter of Manasara Investments is Alex PJ, one of the co-founders of telecom software product company Subex.
While Xinxing group will hold 35%, China Minmetals will have a 20%, with the balance being held by Indian promoters.
Xindia Steels intends to put up, at a cost of Rs 400 crore in the first phase, a 2-million tonne iron pelletisation project at Koppal in Karnataka. According to Gopi Ramanathan, director, Xindia Steels, the company has acquired Hampi Steel, whose iron ore project had been approved by the Karnataka government high-level committee three years ago, but the project had not taken off.
Mr Ramanathan said that as a part of the second phase, a further investment of Rs 8,335 crore would be made to increase the pelletisation capacity, and a steel plant of 2.5-million tonne is being set up. According to him, the demand for steel is projected to touch 200 mt by 2020 and the project would cater to both the domestic and international markets.
Mr Ramanathan said the first phase would take 13 months to build. The average sales in phase I are expected at Rs 1,000 crore with a net profit of around Rs 86 crore, rising to Rs 8,750 crore in phase II and a net profit of Rs 800 crore. By the time phase II gets operational, the company hopes to provide direct employment to 4,800 people and indirect employment to some 10,000 people. The promoter of Manasara Investments is Alex PJ, one of the co-founders of telecom software product company Subex.
While Xinxing group will hold 35%, China Minmetals will have a 20%, with the balance being held by Indian promoters.
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