Odisha’s leading pig iron maker Mideast Integrated Steels ltd (MISl) is all set to convert it into a fully integrated steel plant at Kalinganagar in Jajpur district, MISl CMD Reeta Singh said.
The company would the plant’s capacity from the present 1.2 MTPA to 3.50 MTPA in two phases, she said.
“In the first phase, about 2.5 MTPA capacity expansion would be made and the rest 1 MTPA in the second phase,” Singh said adding, “The capacity addition is subject to getting environmental and forest clearances.” “The State Government has already recommended for grant of environment clearance after successful completion of a public hearing at Kalinganagar and it is under the process of getting the approval from the Union MoEF,” she said.
“The company has a plan to fund the capacity expansion through the external commercial borrowing (ECB) route to the tune of US 400 million dollar in future,” she informed. “Besides, the MISl has started the process for raising working capital loan for which it is in the process of getting a suitable rating by an approved credit rating agency,” she said.
The MISl has achieved total sales of Rs 590.46 crore in the first nine months of the current financial year, which is a record for a nine-month period in a year, Singh said. It has achieved a profit-before tax (PBT) of around Rs 55 crore in the third quarter ended December 2013, which is over 650 per cent higher than that posted in the same quarter in the previous year.
“Maintaining this momentum, the company is all set to achieve an all-time record turnover and profit in the current financial year,” the CMD added.
She further informed that the MISl is also scouting for acquisition of some steel companies in the State those are in distress due to mismatch of facilities, raw material supply constraints and management issues together with high debts. “Such an acquisition will be done only if there is a strong case for creating value for the company,” she said.
The MISl is implementing a power plant of 120 MW in Chindwara, MP, and shortly commencing production of llimestone and dolomite in MP for its own consumption. “All of this will add to the profitability of the company in future,” Singh said.
In view of the long delays in obtaining forest and environment clearances for industrial projects and uncertain regulatory framework in the country, the Mesco Steel has decided to focus on acquiring mineral assets overseas. “Several proposals mostly gold, copper, manganese and coking coal are under consideration, and announcements of the deals will be made at due time,” she informed.