HEG sells steel business to Jai Balaji

NEW DELHI: LNJ Bhilwara group company HEG is selling its steel business to Kolkata-based steel manufacturing group Jai Balaji in a deal pegged at around Rs 100-150 crore. With this, HEG would become a focused graphite electrodes manufacturer. The company had in the past hived off its non-core textile business, which was brought under the textile arm of the group RSWM.

HEG’s steel business comprised a steel billet plant with a production capacity of 1 lakh tonne pa. The unit is located at Durg in Chhattisgarh and was contributing revenues of about Rs 174 crore to HEG. However, with its small size it had been a loss-making operation, though it reported a turnaround during Q4 of the last fiscal reporting a marginal profit of Rs 1 crore.

When contacted by ET, HEG spokesperson declined to comment on the deal. The company board will meet on July 18 to approve the deal. HEG scrip has shot up 25% over the past one week.