The AV Birla group, Sterlite, Metdist and the Finolex group are understood to have submitted their expressions of interest for picking up a controlling stake in copper maker Swil, which is now owned by financial institutions.
After a long delay, Swil has commissioned a 50,000 tonne copper smelter project in Gujarat at a cost of over Rs 1,000 crore.
Institutions including ICICI Bank, IDBI and others own more than 60 per cent in Swil, while the balance is held by the public. Earlier this year, FIs took over control of the company from the Kolkata-based AK Khaitan group.
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"All the four companies have recently completed their due diligence and financial bids will be invited from them in the first week of September," merchant banking sources close to the development said.
Senior Indo Gulf executives confirmed the development, while top Sterlite executives were not available for comments.
Domestic copper majors such as AV Birla group and Sterlite are expanding their copper production capacity by setting up new facilities and acquiring existing units. The AV Birla group has a 1.5 lakh tonne copper capacity, while Finolex is one of the leaders in the cable industry.
The Swil project faced a cost escalation which affected the completion of the project following a delay in getting funds including the receipt of public and rights issue by the earlier management.
The company is also in talks with several overseas trading houses for import of copper scrap as well as export of copper cathodes. Some international trading houses have already shown interest to enter into supply agreements with Swil, sources said.
The copper project, which is equipped with captive power, has an exemption from incidence of sales tax for 14 years or up to a quantum of Rs 385 crore. The sales tax incentive can be converted into a scheme providing for the deferment of sales tax of up to Rs 480 crore.