ETC to diversify into real estate

ETC Corporation India Private Limited, part of the steel valve castings producer Emirates Techno Casting FZE of UAE, is diversifying into the real estate sector and is planning to set up a mixed use complex in Hyderabad at a cost of Rs 400 crore.

The company also proposes to establish a large foundry in a special economic zone (SEZ) in Visakhapatnam involving an investment of Rs 300 crore.

According to company president and chief executive officer Faizal E Kottikollon, a 15-acre site is being acquired for construction of the proposed mixed use complex comprising a retail mall, a five-star hotel, serviced apartments and multi-cinema centre.

"We are making fast progress and announcements in this regard are on the anvil," he said, adding that the company had approached London-based consultant WSP for designing the project.

ETC, which opened its India office here on Monday, is also approaching the Andhra Pradesh government for establishing a 50-acre SEZ at Visakhapatnam where a 30,000-tonne per annum capacity foundry has been proposed to be located. The foundry is estimated to cost $60 million (about Rs 300 crore).

"We got the approval for setting up a foundry in the Mangalore oil and petrochemical zone but are looking at Andhra Pradesh to locate the unit as the state has better infrastructure facilities," Kottikollon told Business Standard.

ETC has currently tied up with two foundries in India for outsourcing steel castings. After entering into a 100-per cent buy back agreement, it is extending technical know-how and management support to the two companies "� Seenaih & Company located in Nellore in Andhra Pradesh and Meera Alloys located in Coimbatore.

Kottikollon said plans were also on the anvil to shift the ETC group's ERP system operation and maintenance to India. "Phase-wise shifting of back office work of the ETC group will be initiated," he said.