HEG all set to increase production

Mandideep-based HEG Ltd, promoted by the LNJ Bhilwara group, plans to be the single-largest graphite electrode-producing plant in the world. The company has recently invested Rs 450 crore to increase its capacity from 30,000 tonnes to 52,000 tonnes.

It will invest another Rs 100-125 crore within two years from now in the unit, which has a capacity to attain a capacity of 80,000 tonnes. However, the shortage of needle coke "� the key raw material - is the prime concern for the company.

"We are in the process of increasing the capacity from 52,000 tones to 65,000 tones but the world over there is a shortage of needle coke "� the key raw material," Ravi Jhunjhunwala, chairman of the company, told Business Standard here.

He was at the unit to inaugurate the company's fully owned research and development centre.

Only a few firms produce needle coke in the world. The are three market leaders, of which two are situated in the US and one is in Japan. Needle coke is a highly crystalline form of carbon and is similar to certain crystalline polymers. It is a premium grade, high-value petroleum coke, used in the manufacturing of graphite electrodes for arc furnaces.

Only Indian oil Corporation has reportedly developed the technology for producing needle coke at its Guwahati refinery, but this is of no help to HEG.

"Our requirement is one tonne of needle coke for one tonne of graphite electrode production. Though Indian Oil is trying, it cannot cater to our needs at present," said Jhunjhunwala, adding, "We are ready to expand once the raw material is available to us since market is not a problem."

HEG's graphite electrodes are exported to 25 countries, including the USA, Canada, France, Germany, Italy, South Korea, and Australia etc. HEG has started exporting graphite electrodes since 1980.

"Today we export more than 80% of our production," said Jhunjhunwala. Started in 1970, HEG's graphite electrode unit in Mandideep today employs 1,000 persons in the backward Raisen district of Madhya Pradesh.

The company's new research and development centre, set up with an investment of Rs 20 crore, will focus on developing the needle coke technology.