PSL to set up overseas plant

In an effort to tap the huge overseas contractual pipe supply market, Mumbai-based pipe major PSL is looking to set up second greenfield plant outside India in the current calender year. The Rs 1,500-crore company is already in talks with a few firms for forming a joint venture for the proposed plant, which will come up either in the US, Mexico, Malaysia or in West Asia

PSL would make an investment to the tune of $50-$100 million to fund the joint venture project. Though the company intends to hold a majority stake in the plant, the structure of the JV is yet to be finalised. Besides, the company hasn't ruled out the possibility of setting up more than one plant in the countries mentioned above.

PSL MD Ashok Punj said: "If we find a viable proposal from a suitable partner for our projects in the specified countries, we may go for multiple arrangements." Last month, the company raised Rs 200 crore through QIP in an effort to increase its capital expenditure and divestment portfolio for FY07.