Binani Industries, which is currently in the process of hiving off its zinc business into a 100 per cent subsidiary, is weighing the option of offloading a 49 per cent stake in the company to Korea Zinc.
The company recently joined hands with the South Korean zinc major to bid for a 26 per cent stake in Hindustan Zinc. The two have entered into a technology tie up as well.
A Binani spokesperson said: "Though we are only sourcing technology from Korea Zinc at present, we do have long-term plans. If our plans to forge a strategic alliance with an international metal producer go ahead, Korea Zinc would be our first preference."
In fact, the very idea of spinning off the company's zinc business into a separate subsidiary is in line with the company's plans to rope in an international metal producer as strategic partner.
The move, besides raising resources for the proposed expansion of the company's zinc smelter, will also help it acquire state-of-the art technology.
Binani Industries has also revised its plan to increase smelter capacity. The capacity of the smelter will now be raised from the present 30,000 tonne to 100,000 tonne in one phase, at an estimated cost of around Rs 450 crore.
The proposed expansion is expected to be undertaken in the first quarter of 2002-03.
The previous expansion plan was envisaged in two phases. The capacity would be increased to 65,000 metric tonne at a cost of Rs 350 crore in the first phase, and to 1 lakh tonne in the second phase at a cost of Rs 150 crore.
The expansion plan was reviewed in consultation with the company's technology partners -- KZ Engineering, a subsidiary of Korea Zinc, and UME of Belgium.
The latest expansion plan is likely to save the company save around Rs 50 crore.
