HEG Ltd, the graphite electrode company of the LNJ Bhilwara group, has embarked upon a massive Rs 312 crore expansion plan.
The Jhunjhunwala group company has allocated capital expansion of Rs 298 crore for the graphite units and Rs 14 crore for the sponge iron unit.
The graphite units expansion includes setting up a captive power plant. The company has informed the exchanges about the capital expansion after the board approved the decision on Thursday.
The proposed expansion, which follows the announcement of spinning off the textiles division, is aimed at converting HEG into a focussed graphite electrode maker.
A couple of months ago, HEG made its decision to spin off its Rishavdeb textiles unit in Jammu & Kashmir as a precursor to merge it with Rajasthan Spinning & Weaving Mills, a group company.
The board of Rajasthan Spinning & Weaving Mills on Thursday approved the scheme for the takeover of the Rishavdeb unit.
The merger scheme will be presented to the Rajasthan High Court under sections 391-394 of the Companies Act, 1956 shortly.
The company, one of the largest electrode makers in Asia, has a turnover of Rs 572 crore. In addition to graphite electrodes, the company makes sponge iron and power generation.
The proposed capital expenditure would be for the first time after the group experienced a hostile takeover attempt in the flagship company, BSL Ltd.
