Ashapura, US ally bid for alumina refinery

Ashapura Minechem, along with its US-based partner American Collides, has bid for a one million tonne alumina refinery project in Kutch.

The company has bid for the project through its 50:50 joint venture with American Collides - Ashapura Volclay. The project, planned by the Gujarat government, envisages an investment of Rs 2,400 crore, over two phases.

Chetan Shah, managing director, Ashapura Minechem, said, "We have bid for the refinery project in Kutch. Although we are in advanced stages of negotiations with the government, the final decision will be known to us in the next fortnight." There is only one other bidder for the project, he added.

In the initial phase, the refinery will have a 5 lakh tonne capacity at an investment of Rs 1,200 crore. In case the company does emerge as the successful bidder, funds for the project would be generated through a mix of debt and equity, Shah said.

"The Gujarat government may also be an equity partner in this project, however, nothing has been finalised as yet," he added. Ashapura is also looking at acquisitions in Gujarat to enhance its capacity. "Along with the ongoing expansion through de-bottlenecking, we are also looking at acquiring some small units in Kutch," Shah said.

Meanhwile, American Collides is also planning to increase the amount of bentonite that it sources from Ashapura from 50,000 tonne per annum to 1,50,000 tonne per annum in two-three years.

Larry Washow, president and chief executive officer, American Collides said, "The demand for bentonite is growing at a healthy rate, especially in Europe and to cater to these markets we, are looking at increasing our bentonite sourcing from India."