The Hindu Business Line : Maithan Alloys to set up Rs 275-cr unit in AP

Hyderabad, Oct. 16 Kolkata-based Maithan Alloys Ltd will be investing Rs 275 crore for setting up a ferro alloys unit in the SEZ at Achutapuram in Visakhapatnam.

“The company plans to set up a 72-MVA ferro alloys unit with an installed capacity of 1.2 lakh tonnes per annum (TPA) in Andhra Pradesh,” Mr Sudhanshu Agarwalla, President, Maithan Alloys Ltd, said while addressing a press conference here on Wednesday.

The company has been allotted 60.15 acres for setting up the plant which is expected to be commissioned by April 2011.

Mr Agarwalla said that while the construction is likely to begin next month, the actual plant work will only start after three months after all the regulatory clearances are obtained.

It is planning to raise the required investment through a mix of debt and equity (internal accruals). Mr S.C. Agarwalla, Managing Director of the company, said that the equity portion is likely to be around Rs 100 crore while the rest will be from debt preferably ECBs (external commercial borrowings).

The company for the last fiscal achieved a turnover of Rs 378 crore and this year it expects the turnover to cross Rs 800 crore.

“Exports have grown from 54 per cent of the total turnover last year to 75 per cent of the total turnover during the current fiscal. Also, for the first six months the turnover of the company is at Rs 414 crore, so as a conservative estimate we are putting the turnover figure for the full year at Rs 800 crore,” Mr Agarwalla said.

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