Jindal Steel Bolivia, Midrex to construct world’s largest capacity single direct reduction module

JSPL had secured the development rights of El Mutun mines, one of the world’s single biggest iron-ore deposits with reserves of more than 40 billion tonne, in 2007

Jindal Steel Bolivia, a subsidiary of Jindal Steel & Power (JSPL), will build a 2.52 MMTPA natural-gas-based Midrex Direct Reduction Plant in the first unit at EL-Mutun in Bolivia. The new Midrex Plant will be the largest single module till date of any commercial direct reduction technology in the world. The contract for this new Midrex Plant was signed on 30 March 2011.

The project will be known as the Naveen Ultra Mega Mod DRI and will feature the latest Midrex Shaft Furnace innovations and will have the flexibility to produce both quality hot DRI and hot briquetted iron for use in a new proposed greenfield meltshop. Iron ore and iron pellets will be supplied from Jindal Steel’s El Mutun Iron Ore Reserves in Bolivia, where Jindal Bolivia is also installing a pellet plant and a steel making facility.

The Naveen Ultra Mega Mod plant can produce up to 2.70 million metric ton per year of DRI.

JSPL had secured the development rights of El Mutun mines, one of the world’s single biggest iron-ore deposits with reserves of more than 40 billion tonne, in 2007. The 40-year contract that gave the company the right to mine about half of the reserves of iron ore also includes setting up an integrated 1.7 MTPA steel plant, a 6 MTPA sponge iron and 10 MTPA iron ore pellet plant in Bolivia. The company will also coming up with a 450 MW power plant. The entire team from JSPL is present at the site and work is at the advanced stage at the site.

Shares of JSPL were trading at around Rs631.15 on the Bombay Stock Exchange in the late afternoon, 1.89% up from the previous close.

User

Saraswat Bank FY10-11 net up 78% at Rs212 crore

“Our profitability will be hit because of the rate hikes by the RBI...As we are in co-operative sector, we have no immediate plans of passing the hike on to our borrowers,” Saraswat Bank’s chairman Eknath Thakur said

The country’s biggest lender from the co-operative space, Saraswat Bank has posted a 78% growth in net profit at Rs212.27-crore in FY10-11 on the back of a lower base but said RBI’s (Reserve Bank of India) rate tightening will result in margins getting dented by up to 80 basis points this fiscal.

“Our profitability will be hit because of the rate hikes by the RBI...As we are in co-operative sector, we have no immediate plans of passing the hike on to our borrowers,” the Bank’s chairman Eknath Thakur said.

The Bank’s net interest margins stood at 3.52% and Mr Thakur expects it to come down to 2.80%. Currently, the Bank’s base rate is 10%, he said.

Commenting on the performance in FY10-11, Mr Thakur said the net profit increase is high because of a lower base in the previous fiscal when the Bank took a hit because of the global slowdown and its exposure to the diamond trade.

Saraswat, which has amalgamated seven banks into itself till now, is in advanced talks to takeover a Karnataka-based co-operative in a weak financial state. An MoU will be signed soon and the target bank has 39 branches, Mr Thakur said, choosing not to divulge the name of the Bank.

The 93-year-old Bank’s capital adequacy stood at 12.7%. According to Mr Thakur, the Bank’s proposal to expand the capital by issuing shares to borrowers at book value is in advanced stages of being given the go-ahead through a change in statutes.

Such permission will help it tide over problems relating to capital raising in its growth plan.

“Being a co-operative, we cannot issue shares and list on the markets. We have to think of newer ways,” Mr Thakur said, reiterating that turning itself into a private entity is also on the Bank’s radar which will take care of the capital issue.

However, he did not give any timeframe for the same.

The Bank’s total business stood at Rs27,313-crore as on 31 March 2011 and it is targeting Rs1-lakh-crore in the next 10 years.

Saraswat has also written to the RBI seeking to start asset reconstruction, microfinance and marketing subsidiaries, Mr Thakur said.

For the asset reconstruction business, it has already sounded some peers in the co-operative space and a state-run lender “informally” with a proposal to team-up as per the regulatory requirement for the business.

On its own asset quality, the gross non-performing assets (NPAs) ratio improved to 3.25% and Mr Thakur attributed the high prevalence of stressed assets to the NPAs coming from the merged banks.

For FY12, the bank is targeting a 25% growth in both advances and deposits as against FY10-11’s 24.45% and 10.75%, respectively, Thakur said, adding, he plans to add over 90 branches during the year.

User

Surya Roshni Q4 net rises 38% to Rs40 crore

Surya Roshni’s net profit stood at Rs28.94 crore in the fourth quarter ended 31 March 2010

Electric resistance welding pipes and lighting equipment maker Surya Roshni said its net profit grew 38.66% to Rs40.13 crore in the fourth quarter ended 31 March 2011, over the corresponding period a year ago.

The company had a net profit of Rs28.94 crore in the same period last fiscal, Surya Roshni said in a filing to the Bombay Stock Exchange (BSE).

Total income increased to Rs738.99 crore in the quarter under review from Rs503.87 crore in the same period last year.

For the year ended March 2011, its consolidated net profit jumped up to Rs67.47 crore from Rs45.17 crore in the 12-month period last fiscal.

Consolidated total income surged to Rs2,532.92 crore in the year under review from Rs1,938.93 crore an year ago.

The board recommended a final dividend of Rs1.5 per equity share of Rs10 each for the year under review.

The board appointed Arvind Kumar Bansal, deputy managing director (operation & corporate management), as chief financial officer of the company in place of SN Bansal.

Surya Roshni functions as a conglomerate with the largest ERW pipe manufacturing plant, a large cold rolling strip mill at Bahadurgarh (Haryana).

It has two lighting units one each at Kashipur (UP) and Malanpur (MP) producing a wide range of fluorescent lamps and metal halide lamps.

The company also markets a wide range of luminaries and accessories, high mast lighting systems, lighting poles, decorative poles and MCBs.

Shares of Surya Roshni were trading at around Rs95 on the Bombay Stock Exchange in the late afternoon, 0.52% down from the previous close.

User

We are listening!

Solve the equation and enter in the Captcha field.
  Loading...
Close

To continue


Please
Sign Up or Sign In
with

Email
Close

To continue


Please
Sign Up or Sign In
with

Email

BUY NOW

The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Online Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Online Magazine)