Ramsarup to invest Rs. 40,000-mn towards expansion

Kolkata: The Ramsarup group is all set to pump in Rs 4000 crore towards capital expenditure, in order to fuel its expansion plans in the next three years.

The investment would be channelised through the group companies, Ramsarup Industries and Ramsarup Lohh Udyog.

“We would invest around Rs 800 crore under Ramsarup Industries and Rs 2,000 crore would be channelised through Ramsarup Lohh Udyog,” said Asish Jhunjhunwala, chairman and managing director, Ramsarup Industries.

The company would also invest Rs 1,200 crore in a 300 mw thermal power plant, which may be under one of the group’s subsidiaries.

Regarding the location, he said, “We have applied to the West Bengal government and the plant may be located at Kharagpur or at any of the coal pit heads.”

The company has also applied to the union commerce ministry requesting a “Wire Park” status for the Durgapur plant.

“We are planning to produce 6 lakh tonnes of steel wires (both coated and uncoated) by 2010 from the current level of 2.25 lakh tonnes,” Jhunjhunwala said. The company would be investing Rs 500 crore in the Durgapur plant, where it has 50 acres of land. “We would need another 250 acres for future expansion,” he added.

Speaking to reporters at the 28th annual general meeting of Ramsarup Industries, Jhunjhunwala said the company is looking for foreign acquisitions, probably in south east Asia, at an investment of Rs 275 crore. He, however, declined to divulge further details.

The first phase of construction of the proposed Kharagpur plant would start by March next year. The plant, which would produce 6.8 lakh tonnes per annum of billets, includes a 350 cubic meter mini blast furnace, a 500 tonnes per day Sponge iron plant, a 20 mw captive power plant, an Electric Arch Furnace (EAF) with ladle refining and an Electro Magnetic Stirrer, an air separation plant to produce oxygen, nitrogen and argon for captive use of the EAF and a sinter plant.

In the second phase, the company would install a second 350 cubic meter mini blast furnace, an AFBC boiler, a rolling mill and coke oven batteries, Jhunjhunwala said.

“By 2010, construction in both the phases would be completed,” he added.

The company declared an annual dividend of 5 per cent after an interim dividend of 15 per cent for 2007.