Burnpur Cement Ltd (BCL), a West Bengal based cement manufacturer is all set to diversify and foray into steel manufacturing and has chalked out a plan to invest more than Rs 20,000 crore on this, said sources close to the development.
Talking to FE, Ashok Gutgutia, vice chairman and MD of the company revealed, ?The steel plant will be of 2.5 million tonnes capacity and will be constructed in two phases in Jharkhand. However, we are yet to finalise the blue print and the decision on the same will be taken soon,? he adds.
BCL has also formed a separate company in the name of Burnpur Ispat Ltd (BIL) for its new steel business and within a month or two BIL will be applying for the iron ore mines to the Jharkhand government.
Along with its diversification in steel, BCL is also planning to foray in to power and real estate. ?At present we are concentrating on our cement capacity expansion in Jharkhand. We have big plans for further diversification, however it?s premature to talk about it,? said Gutgutia.
To part finance its expansion in steel, the company is also considering the option to come out with an IPO. BCL shares on Wednesday were down Rs 0.35 or 1.17% to close at Rs 29.50 on the Bombay Stock Exchange.
Moreover, it had also last year roped in former chairman and MD of Steel Authority of India Ltd (Sail) Arvind Pande as its chairman, who seems to assist the company going forward in steel.
BCL is at present setting up a million tonne cement plant at Patratu in Jharkhand with an eye on the 8-9% demand growth. The plant, to be set up in two phases, will involve a total investment of Rs 500 crore.