|
Texmaco to invest 2200 crore in TN
CHENNAI: Texmaco Engineering with
operations in Indonesia and Hong Kong has
floated an entity — Sundareshwar Alloy and
Stainless Steel (SASS) — to promote a slew
of projects in Tamil Nadu. The NRI-backed
venture would invest Rs 2,200-crore to establish
greenfield plants to manufacture agro and
industrial machinery apart from alloy steel,
forging and other auto components. The projects
are to be set up by the Indian arm in Madurai
and Sivaganga districts. Official sources said
this is the next big ticket investment attracted
by the State in the backward southern region
after Videocon which has proposed to pump in Rs
1600 crore in setting up a plant at Manamadurai
in Sivaganga for producing colour TV sets and
other electronic consumer durables. When
contacted, SAAS ( which was formed last year
with a capital base of Rs 1,300 crore) director
S Srinivasan, who brings to the table over three
decades of experience in steel industry, told
news agencies the Rs 2,200-crore investment
would be made in three different places in
phases. Melur in Madurai is one such location,
where 500 acres has been earmarked for the alloy
steel project, that would have a capacity to
produce 3 lakh tonnes of alloy, special and
stainless steel. The semi-finished products
would find application in downstream industries,
mainly in the automotive sector for making
engine parts and chassis. Likewise, in Sivaganga,
100 acres have been assured to SAAS to
kick-start its forging unit operations. "The
ground-breaking ceremony will take place during
mid-April and after 24 months, the steel plant
will go on-stream," he said, noting that the
third location has not yet been frozen. The
company would use scrap and ferro-alloy as basic
raw-material to produce machinery components and
special grade steel.
|
Through its projects, SAAS is expected to generate
direct and indirect employment for 2,800 people. By
2012, this Indian subsidiary is eyeing a turnover in
excess of Rs 2,300 crore. Meanwhile, it has also
activated the process of tying up funds with SBI to the
extent of Rs 950 crore for funding the projects, Mr
Srinivasan said. Texmaco Engineering, which in the
past, had acquired Best & Crompton through BIFR route ,
is the latest to join the investors queuing up to flag
their presence in TN. The state government has already
lined up a series of investment proposals that are
estimated to be over Rs 10,000 crore spread across a
diverse range of industries. It is learnt from
government circles that Hero Honda (whose team met
officials recently), an overseas glass manufacturer and
a cement player, having national presence are engaged in
advanced negotiations though they are yet to formalize
their announcements. In 2008-09, TN Government
achieved the targeted fresh investment of Rs 30,000
crore. In the current fiscal, it is set to breach the Rs
55,000 crore mark against the projected figure of Rs
50,000 crore. Of this, auto sector including tire
projects would account for Rs 30,000 crore and the
electronics sector Rs 8,500 crore. It is said
Korea, Japan, US, Germany and France are the countries
from where maximum investments have poured into TN this
year, while 35 per cent of the investments has come from
domestic companies. By March 2011, the investment level
is set to cross Rs 70,000 crore, a top official told
news agencies here.
|
|
