JB Group plans Rs2876cr spend in India, China

The JB Group, a $3 billion diversified business house with interests in various segments, is planning to invest $350 million (Rs 1376 crore) in the Mongolia region of China, to develop and utlise the coal mines acquired by the company in that region. Further, the group is planning an overall investment of about Rs 1500 crore in India during the 2007-08 period in various business segments.

Addressing a press meet in Mumbai today, officials said the company has acquired rights for coal mining at Erdos City in inner Mongolia with a total mining area of about 20 sq kms, with proven coal reserves of about 800 million MTs. The company is setting up a methanol refinery in the region to utlise the coal reserves. The plant, likely to take off by late 2008, will have an initial production capacity of 300,000 tonne and shall expand to 1, 20,00,000 tonne per annum.

Two years ago, the company had acquired a coal mining and methanol refining lease in the region, to become the first Indian owned company to enter the region, known for one of the largest coal reserves in China.

The JB Group, founded in Surat in Gujarat during 1965, mainly operates in China, India, and the Middle East in businesses like property and real estate, mining, oil and gas, alternate energy, logistics, diamonds and jewellery.

According to Jatin Chutke, vice president, the company will invest about Rs 1500 crore in India during the 2007-08 period.

This will include setting up of an integrated steel plant in South India, mining of metals and minerals like limestone, bauxite and manganese and setting up of a Sofitel hotel in Goa. The group also plans to put up an aluminium plant and a coal to methanol refinery in India. The group is in the process of identifying prospective mining blocks in Karnataka, Maharashtra and Rajastan for iron ore, bauxite mines and coal mines.

"We are planning to replicate in India our successful business model in China," he said.

The company is also planning to set up a coal to methanol refinery in Indonesia, similar to the one in China. The group has acquired five operating open pit coal mines in the East Kalimantan and Northern Indonesia islands with a total mining area of about 30,000 hectares.