Adani Plans Salt Business Foray

Ahmedabad, June 26: | Updated: Jun 27 2003, 05:30am hrs
After ports, gas distribution business and retail stores, the Ahmedabad-based Rs 4,500-crore Adani group is now diversifying into the salt business.

The company is all set to execute a Rs 48-crore export oriented project for production of industrial grade high purity salt and has entered into a sole distribution agreement with the Kowa Company of Japan.

Under the agreement, Kowa would purchase the salt produced by Adani Chemicals Ltd, a wholly owned company of the Adani group, and sell it on an exclusive basis in the international markets.

The annual minimum production target for the first year is 500,000 metric tonnes, which can later go up to 1 million metric tonnes depending upon the monsoon spell.

Speaking to The Financial Express, sources in ACL revealed that the company had already entered into technical arrangements with reputed consultants like Minenco of Australia, Dalal Mott MacDonald of India and Krebs Swiss of Switzerland for processes, engineering and washery consultancy for the salt works. In addition, an impact assessment report is also being prepared by the National Institute of Oceanography.

Company sources also disclosed that the project was proposed to be funded by 2:1 debt-equity ratio.