MSPL Gases plans expansion in AP, Tamil Nadu

With steel plants looking for a dedicated supply of industrial gases to increase production, Hospet-based MSPL Gases Ltd, has planned investments worth Rs 40 crore in Andhra Pradesh and Tamil Nadu.

MSPL Gases Ltd of the Baldota Group owns and operates industrial gas plants in Hospet, Goa and Solapur (Maharashtra).

Recently, the firm installed an oxygen plant (50 tonnes a day) on build-own-operate basis for Steel Authority of India Limited (SAIL) "� Visvesvaraya Iron and Steel Plant (VISL) at Bhadravathi, Shimoga district, Karnataka.

"Consistent supply of oxygen is a prerequisite for increasing liquid steel production. Many steel plants, particularly those planning expansion, are going in for captive oxygen plants to ensure continuity of supply. We have initiated a dialogue with other customers in South India to set up oxygen plants. We are targeting steel plants in Andhra Pradesh and Tamil Nadu," MSPL Ltd executive director Shrenik N Baldota told Business Standard.

The Rs 45-crore company intends to double investments next year. "We will invest between Rs 35 crore and Rs 40 crore depending on the requirements of the steel plants in Andhra Pradesh and Tamil Nadu," he said.

The installed capacity of MSPL Gases Ltd is 100 tonnes (oxygen, nitrogen and argon gases) at present. "The installed capacity will go up to 200 tonnes next year through expansion," Baldota pointed out.

The gases produced by the company are also supplied to hospitals.

"At present, 85 per cent of the gas produced is consumed by industries and the remaining by hospitals. We will target only the industries, especially steel plants, for growth," he stated.

In the first quarter of 2006-07, the firm recorded a growth of 34.01 per cent in sales and 38.59 per cent in gas production, compared with the corresponding period last year.

"The industrial gas business is growing with more industries coming up. But we will continue to remain a medium player. The gas business' contribution to the group's overall revenues will be 10 per cent," Shrenik said.

Shrenik claimed that unlike other industrial gas-producing companies, MSPL Gases Ltd is the only firm that provides Indian technology for gas plants.

"For instance, the oxygen plant installed at SAIL-VISL has a provision of turning down the ratio of production to match the requirements of the consuming plant. This will, in turn, facilitate steel producers to save oxygen during the slack consumption period," he explained.