Texmaco eyes hydel units

K K Birla group engineering outfit Texmaco Ltd is planning to enter into hydel power in a big way and become an infrastructure company.

Texmaco was now implementing a mini hydel project in Neora river in Darjeeling district of West Bengal and was looking at more hydel projects in northeastern India.

Besides hydel projects, the KK Birla outfit was hoping to take up its first the real estate development activity in Delhi during the current year.

The company recorded a turnover of Rs 242.38 crore in 2004-05 from Rs 138.29 crore in 2003-04.

The vice-chairman of Texmaco, Saroj Poddar, told reporters after the 65th annual general meeting of the company that the company was actively looking at more power generation projects after the Neora Hydel Project in West Bengal.

"The North-east is going to be the hydel power hub of the country and Texmaco will explore opportunities there as it has a strong presence in hydro mechanical equipment and structures. Entering hydel power generation is in line with existing activity but definite plans have not been firmed up. The company will learn from the experience of Neora project," he said.

Texmaco is now implementing 3 megawatts hydel project under a company called Neora Hydro Ltd, a joint venture between Texmaco and other K K Birla group companies.

"Neora is a stepping stone for us. This could mark the opening of a whole new era in Texmaco," he said. According to Poddar, Texmaco is investing Rs 20 crore in the hydel project. Commenting on the real estate development, Poddar said the real estate development project in Delhi was pending before Supreme Court. "The decision in this regard is expected this year," he said.

Poddar made it clear that the company did not have any plans to develop real estate on its land at Panihati and Belghoria north of Kolkata.

"Texmaco has expansion plans but for this, the surplus land in the existing units," he said. Texmaco president Ramesh Maheswari said the company was planning to manufacture specialised wagons.

"New type of wagons will be made as the wagon industry will remain buoyant in the next few years following the decision to develop a dedicated freight corridor among metros," he said.

Texmaco has a order book position of Rs 600 crore. In a parallel development, the KK Birla group is contemplating to merge the subsidiaries of Texmaco with the company.

Texmaco currently has four subsidiaries "" High Quality Steels Ltd, Shree Export House Ltd, Macfarlane & Co Ltd and Texmaco Mines Ltd. Poddar said the company was evaluating the merger but indicated the merger would not take place in the current financial year.