Global Vision

The two million TPA hot rolled coils plant has stabilised and sales turnover for six months ending September 96 has touched the Rs 1,000 crore mark.

Financial restructuring, which includes among other things, selling stake in Essar Power will yield a cash inflow of Rs 500 crore which can be used to retire high-cost debt.

The company has tied up with a number of cold rollers, both in India and abroad, which will ensure offtake of almost the entire output for 96-97. This assumes significance because the Indian HR coil industry is heading for a glut.

If these points are analysed then Essar should end this year with a sales turnover of Rs 2,500 crore and profits of Rs 150-160 crore (net after tax). I must say that I respect the Ruia brothers for having a global vision.