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| KKN plans acquisition of Balaji Ispat |
| BS Reporter / Kolkata Aug 26, 2010, 00:47 IST |
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Kolkata-based FMCG (fast moving consumer goods) company KKN Group today announced the acquisition of Balaji Ispat, marking the group’s entry into the steel sector.
“The cost of acquisition, which includes modernisation and expansion costs is estimated to be around Rs 60 crore, 70 per cent of which will be financed partly with credit from the banks, and the rest from company’s resources,” said Kausshik Kumar Nath, managing director, KKN Group.
Balaji Ispat is located at Dankuni and is engaged in manufacturing of MS ingot. Also present at the event was Satyabrata Ganguly, chairman director, KKN Group.
After the acquisition, KKN plans to modernise and expand the manufacturing capacity of MS Ingot from existing 72 TPD (tonnes per day) to 170 TPD and set up a hot rolling mill and TMT with a manufacturing capacity of 200 TPD.
The capacity of the unit will also be diversified, said Satyabrata Ganguly, chairman, KKN Group, adding, “we plan to further expand the unit, manufacturing SGCI casting and malleable iron casting, which has potential in engineering industries, Railways, state electricity boards, wagon builders, and the automobile sector among others.”
Also, KKN plans to set up a plant at Kalna in Burdwan, for which it acquired 24 bighas.
At the plant, the company will set up extraction and refinery units with an expected production capacity of 200 TPD.
“The solvent extraction and refinery units will start work around January and March 2011, respectively. We are also looking at refining of soya oil with a production capacity of 500 TPD in Haldia, for which we will set up a project with an investment of about Rs 250 crore by 2013,” Nath said.
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