Kalyani Steels, Gujarat NRE in JV

Kalyani Steels has entered into a joint venture with Gujarat NRE Coke for setting up a greenfield coke oven battery plant in Dharwad, Karnataka.

The capital outlay for the 3.24 lakh tonne per annum plant is pegged at around Rs 45 crore. The project is proposed to be funded through a mixture of debt and equity.

A K Jagatramka, managing director, Gujarat NRE Coke, said, "We are setting up this plant primarily to cater to Kalyani Steels' coke requirements."

While the equity base of the project will be around Rs 24 crore, the remaining funds will be borrowed, Jagatramka added. Gujarat NRE will hold 60 per cent of the venture, while the balance will be owned by Kalyani Steels.

"The land deal will be completed by next week and we are expecting the project to go on stream in phases from October 2004," Jagatramka said.

Gujarat NRE coke is also looking at doubling its existing production capacity by setting up another greenfield coke plant near Kandla, in Gujarat with an annual capacity of 3.24 lakh tonne. The project would commence commercial production from April 2004.

The company is expecting the demand for coke to be buoyant in the coming financial year. "We have orders booked until March 2005," Jagatramka said.

Kalyani Steels recorded a turnover of Rs 360.9 crore during the financial year ended March 31, 2003, and its net profit stood at Rs 5.6 crore.

The company's trading turnover, primarily on account of buying and selling coke, stood at Rs 95.5 crore. Its manufacturing turnover was at Rs 234.2 crore last fiscal.