Kennametal to foray into construction tools again

Kennametal Widia India, the Rs 230 crore Bangalore arm of the metal working major Kennametal is close to logging its first mining and construction-related tooling order, after divestment of its mining and construction division to Sandvik Smith late last year.

While the hived-off division was a standalone portfolio with downstream applications, Kennametal says related tooling, which largely focuses on tools for road rehabilitation and resurfacing is its core business. With this, the company hopes to log anywhere between Rs 30 crore and 50 crore annually from the segment.

Kumar Kanetkar, managing director, said that the Indian arm has got the go ahead from the mining and construction business in US.

He added that talks were on with several parties here and the first order could come as early as next month. The company is expected to adopt a combination of import and domestic production to service customers. For instance, he said that the company will essentially import speciality carbides from Kennametal.

While the hived-off division had under its fold indirect application of hard metals, the mining and construction related tools portfolio planned now will fit Kennametal's strategy to focus on hard metals and components.

The product portfolio is expected to include carbide applications, tools for road construction, crushing, and making sand "" all hard metal applications.

Despite the foray, the company maintains that it's production divisions will be limited to machine tools, metal cutting tools and metal forming tools catering to automotive, mining and engineering sectors for now. Kanetkar added that likewise the company will explore possible avenues to grow. But these efforts will certainly be in line with Kennametal worlwide's focus.

The mining and constructions business was sold off to Sandvik Smith for Rs 65 crore in an all-cash deal towards the end of 2003.

Then the division accounted for about a fifth of the company's topline and had 220 on its rolls.