Reuters

Kolkata: Steelmaker Jai Balaji Industries Ltd expects a 58.4% rise in 2007-08 revenue to Rs17 billion (Rs1,700 crore, $420 million) on higher steel demand, a senior company official said on Thursday, 13 September.

“Good demand for steel, boom in construction and infrastructure sectors will drive growth,” Ajay Kumar Tantia, company secretary, told Reuters.

In 2006-07, the company earned a profit of Rs620 million on a revenue of Rs10.73 billion.

It expects to start work soon on setting up a 5-million-tonne a year steel plant, a 3-million-tonne cement plant and 1,215 megawatt power plant in West Bengal.

“We will start work as soon as we get the requisite government approvals. We hope to complete first phase of construction in three years,” Tantia said.

The Rs160 billion project is to be completed in phases over 10 years.

The expansion is to be funded through debt and internal accruals, but the company is also weighing other options such as equity or overseas bond issue.

“We will take a final decision on ways to raise funds by the end of current fiscal.”

Jai Balaji has steel-making capacity of 1.2 million tonnes with two plants in West Bengal and one each in Chattisgarh and Jharkhand.

Earlier this year, a consortium of Jai Balaji, JSW Steel Ltd and Bhushan Steel Ltd has been allotted a coal block in Jharkhand.

“We will set up a separate company to develop the coal block, which will reduce input costs,” Tantia said.

Shares in the company rose 0.37% to Rs190.80 in the Mumbai market.