Ajanta group to foray into power generation

Tiles manufacturing unit to start operations in May

The Morbi-based Ajanta group, after diversifying into healthcare, bulk drug manufacturing and consumer durables, has decided to foray into power generation.

Jaysukh O Patel, director of Ajanta Transistor Clock Manufacturing Company said, "The group has plans to set up a power plant with an investment of Rs 500 crore at Samakhiali in Kutch district."

"The lignite-based power plant project will become operational in next two years," he said.

The power project will be commissioned in 18-20 months after work on the project begins, he said.

"The whole project is still in the conceptualisation stage. It is too early to talk about at what rate we would sell electricity, who the buyers would be," Patel stated, when asked about details of the project.

Apart from the power plant, Ajanta group's vitrified tiles manufacturing unit and the consumer durables unit, which will manufacture digital versatile disk (DVD), video compact disc (VCD) player, washing machines and digital camera will start its commercial operation in May, 2005, said Ravi G Iyengar, chief executive officer of Ellora Time Ltd, in Ahmedabad on Wednesday. The group estimates an initial investment of Rs 100 crore in the new project.

Jaysukh Patel said that the tax benefits for setting up units were the primary reason for selecting Kutch as the base for the new project.

Originally the tiles manufacturing unit was set to become operational in December, 2004.

Asked about the delay Patel said, "The government has made some changes in the industrial policy in Kutch, which has led to a delay of five months in the commercial operation of the tiles manufacturing unit."

"The tiles manufacturing plant will have the capacity to manufacture 1 lakh tiles per day", informed Sanjoy Das, national marketing manager, Ajanta Transistor Clock Manufacturing Company.

Das further said that 90 per cent of work has been completed and the unit would start production of ceramic tiles from May.

About the company's turnover, Patel said that the Ajanta group will end the current fiscal with a turnover of Rs 500 crore and expects a turnover of around Rs 800 crore in the 2005-06 fiscal.

When asked about the company going public, Patel said, "Ajanta group is run by a family and there are no plans of going public in next five years."