Sterlite Industries, part of the Anil Agarwal-owned Vedanta group, is looking at partners for its proposed 5 million tonne capacity steel plant at Orissa, to be implemented with an estimated investment of Rs 7,000 crore to Rs 8,000 crore, said Anil Agarwal, chairman, Sterlite.
?We have identified three partners in India, Japan and Europe and will finalise one of them to become our partner in the near future,? he said. ?We are even willing to offer majority stake to the partner if required,? Agarwal responded to a query. Sesa Goa, a group company which was acquired a year back, is expected to have 25 million tonne iron ore capacity soon, he added.
Responding to a volley of queries at the foundation laying ceremony of the 13,000 tonne capacity aluminium flouride plant at Karaikudi near Madurai in Tamil Nadu on Sunday, Agarwal said the company is also ready to acquire the residual stake in Balco as well as Hindustan Zinc Ltd.
?We have already petitioned the government on this and hope the government will finalise the sale of residual stake in these companies soon. We may require Rs 10,000 crore to acquire the residual stake of both the companies (49% in Balco and 27% in HZL),? he said.
According to Agarwal, the company has earmarked an overall investment of $9 billion over the next two to three years to increase the capacity of all metals (copper, zinc, aluminium) to one million tonne each apart from putting up a 2,400 mw power project in Orissa. In addition to that the company is also putting up a 1.4 million tonne alumina refinery with an estimated investment of $800 million, he said.
?Of the projected investment of $9 billion, nearly $8 billion will be invested in India while $1 billion will be invested in Zambia for 5 million tonne copper plant,? he said further. The company is also planning to set up 10,000 mw power projects in Chattisgarh/Orissa.
In response to a query on the funding pattern, he said the group has already raised Rs 9,000 crore through ADR last year and will have a cash reserve of over Rs 5,000 crore in hand. ?We will be raising 60% of the total amount in debt,? he added.
In addition to the ongoing capacity expansion, the group will be expanding its aluminium capacity at Malco in Tamil Nadu to 65,000 tonne per annum as against 40,000 tonne with an estimated investment of Rs 300 crore, which include a 25 mw captive power plant.
On Sesa Goa, he said this company plans to have a separate focus on ship building, logistics and port development.
