Gontermann-Peipers India Ltd (GPI) has signed a memorandum of understanding (MoU) with the Chhattisgarh government to set up a pellet plant of 1.2 million tonne.
“The project will be implemented over 18-24 months and the investment will be to the tune of Rs 300 crore,” Gontermann Peipers managing director, Lalit Poddar, said.
The land will be directly purchased by the company and the requirement is around 50 acre. The plant is likely to be ramped up to 2.4 million tonne in the second phase.
“The MoU will help us meet increased customer demands and deliver quality products. The MoU with the government of Chhattisgarh and introduction of value added castings to our product portfolio is an important step in realising GPI’s expansion plans in India,” Poddar said.
The company is also planning to extend its product portfolio with the launch of 6,000 tonne per annum value added castings project. The implementation involved a cost of Rs 48 crore and would cater to sectors like mining, power, railway and defence.
The company has enough land bank at its existing plant at Pailan for the project which is expected to be operational within 18 months. This is in addition to the modernisation and expansion undertaken at an outlay of Rs 75 crore, which is expected to be completed by this month-end.
The project will increase the manufacturing capacity from the present 15,300 tonne to 21,000 tonne. GPI has also developed the high-speed steel rolls which is an import substitute.
Meanwhile, the company is working on entering the commodity futures market by setting up a nationwide multi-commodity exchange. “We will be the third greenfield exchange in the country if our proposal is accepted by the Forward Market Commission,” Poddar said.
