Steel pipes maker PSL said that it has completed acquisition of about 250 acres of land for its proposed special economic zone (SEZ) near Pipavav in Gujarat. The land purchase may bring the company closer to getting a government approval for the project.
PSL plans to diversify its business into alternative energy, through a single-product SEZ in Gujarat, which will require an initial investment of about Rs 150 crore.
“We are planning to apply for the second or the final approval,” Ashok Punj, managing director, PSL, said.
In the initial stage, the company plans to build the basic infrastructure for the units. The SEZ will have multiple bio-diesel units. Punj, however, did not divulge details about the funds the company plans to raise for the project.
In view of higher demand from oil and gas companies, PSL expects its sales to grow by at least 35 per cent this year from Rs 2,248 crore last year. The company also expects its gross operating margin to widen to as much as 11 per cent in the current financial year from 8 per cent on higher capacity utilisation and falling steel prices.
