Vishal Export Overseas to sell windmills

Ahmedabad-based Vishal Export Overseas Ltd has decided to sell its windmills in Tamil Nadu and Rajasthan to raise money for its upcoming ventures. The company is currently facing financial constrains but does not intend to exit the power generation business.

Managing director of Vishal Exports Overseas Pradip S Mehta told Business Standard that they had decided to sell their windmill projects as they "required finance". He added that they are likely to earn more than Rs 250 crore from the sale. The company has till date invested Rs 180 crore in its windmills projects in Tamil Nadu (TN) and Rajasthan. SBI Caps have been appointed to identify potential customers, he said.

The company is yet to realise a substantial amount from various quarters, including realisation of government export incentives, domestic receivables and export receivables. "Being a trading house, we need huge working capital for our daily business. As a substantial amount is tied-up in various places, we need to get cash from other resources," Mehta said. The company is also in talks with various bankers to raise funds.

But the sale of the windmills does not mean the company is exiting the power generation business. The company recently entered into an agreement with Adani Group to set up the Adani Vishal Power Enterprise for power generation. Vishal Export Overseas has a 5 per cent holding in the consortium and will invest Rs 43 crore in the project. The company has also executed several hydel power projects in Himachal Pradesh, with a new one planned for Uttaranchal.

Vishal Exports Overseas began its journey in the power generation sector in 2001 through the installation of windmills in TN and Rajasthan with a generation capacity of 1 Mw. The company gradually increased its windmill power generation capacity to 40 Mw.

The company reported a turnover of Rs 3,935.78 crore for the 12 months-ended March 2006 and Rs 1,421.56 crore for March 2007.