Vizag firm bags Orichem for Rs 9.12 cr

Orichem Ltd, a subsidiary of Idcol, is likely to be divested to A S Steel Traders Ltd of Vishakhapatnam which won the bid for the company.

Sources close to the development said, "Technical and financial bids by the prospective investors for Orichem was opened a few days back at Bhubaneswar and there were seven bidders including A S Steel traders."

The Vishakhapatnam-based company quoted the highest price at Rs 9.12 crore for buying out Orichem which processes chromium.

Other companies that bid for the company were Sainik Mining & Allied Services Ltd from Orissa, VISA Industries Ltd of Bhubaneswar, Global Minetec Ltd and Negolice India Ltd from Delhi, Himani Ferro Alloys Ltd from Bhubaneswar, and Mahanadi Casting Ltd from Cuttack.

The reserve price for Orichem was fixed at Rs 7.40 crore for the entire assets of the company. The company with majority holding from Idcol has stake by financial institutions such as IDBI, ICICI, IFCI, LIC, and GIC.

Orichem is into manufacture of chrome chemicals such as sodium dichromate with an installed capacity 3,300 MTPA, basic chrome sulphate (1,500 MT) and, yellow sodium sulphate (capacity 1,920 MTPA).

Sources close to the development said that all of Orichem's products have large demand and are used by companies such as Asian Paints, Nerolac, major tanneries operating in West Bengal and southern part of India, Titagarh and Ballarpur Paper Mills and companies operating in the pharmaceutical sector.

The plant is located at South Balanada in the industrial town of Talcher in Orissa and is around 150 km from Bhubaneswar.

Chrome ore, is one of the key raw material for production of sodium dichromate, and is abundantly available in Orissa, the state with 95 per cent of the nation's chrome deposits.

The present requirement is met out of the chrome mines of Idcol. Other major raw materials required include soda ash, sulphuric acid.

The company at present employs 4 people for executing and managing the day-to-day affairs of the company.

During operation of the factory, 200 permanent and an equal number of casual workers were employed, most of whom are local residents. After closure of the company in October 2000 under the ID Act, 1947, all workmen were retrenched.

The services of staff and officers were also terminated through a VRS.