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The Associated Group, to which belongs the listed company, Hind Aluminium Industries, intends to invest $10 million in Oman to put up a facility to manufacture calcined lime. Calcined lime is a key ingredient in the manufacture of steel.
The availability of limestone in the region is what prompted the Associated Group to invest in Oman. When it is production-ready in September 2013, the plant will have a capacity of 132,000 tonnes a year, it is learnt.
The project will be funded by equity contribution to the extent of 30 per cent of the project cost — 97 per cent of the equity will come from the group, while the rest will come from the promoters in their personal capacity.
For 2012-13, the group’s growth is expected to be driven primarily by the conductor segment, while the alloy ingots segment is expected to witness decline in growth. The alloy ingots segment has been generating low profits as the majority of raw materials are imported, while sales are in the domestic market to automobile manufacturers, says the ratings agency, CRISIL.
In addition to these three segments, the group also trades in bauxite. It also has windmills of 4 megawatt in Maharashtra, from which it derives revenues of around Rs 30 million. It has signed a power purchase agreement with MSEDCL for the same.
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