Facor Group to invest Rs 2,500cr in Orissa

Visakhapatnam: Delhi-based Facor group (Ferro Alloys Corporation) is planning to invest Rs 2,500 crore in Orissa over the next four years.

“We are planning to integrate all our operations and, therefore, have decided to invest Rs 2,500 crore to set up a 0.5-million tonne greenfield stainless steel manufacturing unit and a 250Mw thermal power unit in Orissa,” Ashim Saraf, joint managing director, Facor, told mediapersons at Garividi on Monday.

The group has ferro alloy units at Garividi near Visakhaptnam and Randia district in Orrisa and an alloy steel unit in Maharashtra, producing about 1,30,000 tonne of ferro chrome, ferro silicon and other material. It sells these products to other alloy steel units, besides exporting them.

“Once we set up our stainless steel unit, the entire ferro alloy products would be used in our unit,” he added.

Of its total financial requirement of Rs 2,500 crore, the group will contribute Rs 800 crore and would borrow Rs 1,600 crore from financial institutions. Of the proposed investment of Rs 800 crore by the promoters, a strategic partner would contribute 50 per cent.

“We are negotiating with some foreign firms for financial and technical support to implement this project. We expect Rs 400 crore investment from the strategic partner,” he said.

The company clocked a net profit of Rs 35 crore on a turnover of Rs 777 crore in the last financial year. It projects around Rs 100 crore net profit on a turnover of Rs 1,000 crore this fiscal.