TDT Copper to enter into backward integration

Is looking to acquire Rs 100-cr copper smelter in Thailand

TDT Copper, India’s third largest primary copper rods producer only after Hindalco Industries and Sterlite Industries, is planning to set up a backward integration project through acquisition of a closed smelter in the South East Asia (SEA).

The negotiations for the same are currently at an advanced stage.

With an earmarked investment of Rs 100 crore, the company plans to produce virgin copper cathodes from concentrates in Thailand to take advantage of India’s free trade agreement (FTA).

“We are looking for a closed smelter in Thailand with an operating capacity between 1,000-1,500 tonne a month with an estimated investment of around Rs 100-crore. We would revive it similar to the way we did for TDT copper, to feed our Indian wire rods plant. We are in talks with a couple of players. The deal is expected to be closed in three – six months,” said Avinash Ladha, managing director of TDT Copper.

The company currently procures copper cathodes, the key raw material for producing wire rods, from overseas smelters including Codelco, First Quantum and Glencore to name a few.

TDT Copper was set up as one of the first 100% foreign direct investments in India by two multinationals – Taihan Electric Wire Co Ltd, South Korea (having large international presence in copper, wires and cables of over five decades) and Tomen Corporation of Japan (world’s 40th largest corporation by sales) based on Southwire Continuous Cast Rod System (USA), a technology adopted by most of leading global producers.

After running the unit for a couple of years, it was closed down.

“Following that we took over the wire rod plant that exists currently in Haryana, near Delhi in 2009. We spend around Rs 50 crore on its revival and now, the plant is running smoothly with an annual turnover of Rs 700 crore,” said Ladha.

Operating at full capacity, TDT Copper has currently the installed capacity of 79,200 tonne per annum. The company’s client base includes Havells, KEI, Paramount, BHEL (transformer), Orient fans etc.

Also, TDT has acquired around 100 acres of land from the Gujarat government to develop an industrial park in Vadodara to help industrial houses – both domestic and global – enter the state. With an assistance from a TDT Copper professional, an investor can acquire even a small piece of land bank to commence manufacturing and service unit in Vadodara.