Adhunik Metaliks gets iron ore mines in Orissa

Adhunik Metaliks gets iron ore mines in Orissa

Business Standar, Mumbai

19th July 2006

The Centre has allotted iron ore mines to Kolkata-based Adhunik Metaliks. The mines are at Kulum in Keonjhar district of Orissa.

Manoj Agarwal, managing director, Adhunik Metaliks said today, "The mines would provide huge benefits to the company in terms of assured raw material supply at very low cost. The better quality of iron ore in the mines would result in improved efficiency of plant and better quality of finished products".

The mines are with a rich ferrous content of over 65 per cent and situated 125 kilometres away from the company's plant in Rourkela.

Detail project report for mining is under preparation and the mining operations would commence within 6 to 9 months. With the commencement of mining cost per tonne of iron ore would come down by more than 50 per cent, he said.

Adhunik Metaliks today also announced the acquisition of Unistar Galvanisers and Fabricators, manufacturer of sub-station structures and transmission towers, for an undisclosed amount.

Unistar will be a 100 per cent subsidiary of Adhunik, Agarwal said. The group would also merge Neepaz Tubes, a group company of Adhunik with Unistar Galvanisers.

The company expects to leverage from Unistar strength by forward integrating its existing product line and improve top and bottom line.

After the expansion of its units the company has plans to export 50 per cent of its products to countries like Bangladesh, Bhutan, Nigeria, Algeria etc.

The company has plans to buy mines in Australia by forming a JV there.

"But we are trying to get hold of coking coal mines in India only as in Australian the price is high.", Agarwal said.

The company has commenced work on its upcoming projects, to the size of Rs 437 crore, at its existing plant site in Chandrihariharpur in Rourkela.

At present the company has a manufacturing facility of 2,50,000 tonne per annum of auto grade alloy billets and rolled products which are being backwardly integrated through sponge iron and pig iron making facilities.

For the financial year ended March 2006, Adhunik made a total income of Rs 426.55 crore and a net profit of Rs 33.71 crore. The company for the first time declared a dividend of 5 per cent last financial year.

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