Shashwat Int'l plans acquisitions, Rs250cr capex

Ravin Jhunjhunwala-promoted  Shashwat International (SILl), has drawn up an expansion programme involving an investment of Rs 250-crore designed to catapult it into the second position in the Indian refractories industry.

The company is also in the process of acquiring assets of Orissa Industries, a large refractory unit in the state, presently under BIFR, sources told PTI here today.

A part of the Rs 360-crore ORIND group, the refractory capacity of the company post-expansion and acquisition will increase to 3,00,000 metric tonnes per annum (mtpa) from the present 80,400 mtpa, making it the second largest player in the refractories space in India after Tata Refractories.

According to sources, the company is examining the option of an IPO along with a combination of internal accruals and debt to fund its expansion-cum-acquisition programme.

Shashwat currently has two refractory manufacturing facilities in Gujarat and West Bengal while the ORIND Group has two more abroad in the US and China. ORIND is the largest exporter of refractories in China.

The company's overseas operations are a part of a joint venture between Ravin Jhunjhunwala and L N Mittal, chairman of leading global steel major Mittal Steel. Recently, Minivet, a foreign institutional investor (FII) had picked up a 5% stake at $ 3 million in the company.