Idl Lines Up Mine, Realty Ventures

The Hinduja group company IDL Industries Ltd, after divesting its 25.75 per cent stake in Astra-IDL Ltd for Rs 81 crore in February 2001, is drawing up major expansion and diversification plans.

The company plans to foray into mining services, property development and defence sector projects. It is also contemplating entering the oil and refinery sectors through bidding.

The company is seeking shareholders' permission at its annual general meeting to be held on August 27 for the purpose.

IDL proposes to exploit its vast real estate in Hyderabad and at some other locations to improve returns.

For the defence sector, the company has informed its shareholders that it proposes to amend the objects clause to qualify for bidding in view of the government's decision to open the sector for private industries with 100 per cent domestic private investment.

 

The explosives manufacturer has already set up a mining services division to offer contract services right from excavations to debris clearance, in line with the changed business scenario in the mining industry.

The company has realised the importance of such divisions since there has been a distinct shift in preference for services on a total basis than only supply of explosives for projects such as road building and dam construction.

The company hopes to maintain its leadership in the explosives business by utilising its newly-created bulk explosives and accessories plants along with a large distribution network.

IDL Industries has recorded a net profit of Rs 1.35 crore on a sales turnover of Rs 35 crore during the first quarter of the current fiscal.