"We would have to go for an IPO, but as of now we have not decided on the timing. It is very clear that the way the company is growing it has to go public, and I am sure that would happen some time during 2009," said CD Kamath, managing director, speaking to FE on Tuesday.
Tata Steel now has a 72% stake in unlisted Tata Refractories. SAIL owns 10%, while the rest is held by institutions like UTI, IDBI and some of its current and ex-employees.
TRL's main plant in the country at Belpahar (Orissa) with a capacity of around 2.5 lakh tonne per annum is said to be among the biggest single-location refractory units in the world.
In line with its growth projections, the company has selected Visakhapatnam as its second major plant location in the country. It initially wants to put up a Rs 90-crore high alumina refractory unit there in 2009 and then go on to add a high-tech 'monolithics' plant.
Easy to lay, monolithics are special refractory formulations in the powder form for doing castables, which can be used by industries ranging from steel to petroleum.
The company is already in the process of identifying a 30-acre plot for the proposed facility in Vizag.
TRL, which reported a turnover of Rs 610 crore in 2007-08, is targeting to cross the Rs 700 crore-mark in the current fscal.
The company has in April 2008 launched a five-year turnover target, Mission 2000, which aims to take the turnover to Rs 2,000 crore by March 2013. "I do hope that we will reach Rs 1,000 crore very quickly and then Rs 2,000 crore by March 2013," said Kamath.
TRL is operating a magnesite-based refractory unit in China since early 2007, where it recently invested Rs 75 crore in two tranches of Rs 37 crore and Rs 17 crore in order to double the capacity from 30,000 tonne per annum to 64,000 tonne per annum.
The company also plans to have a bauxite-based refractory project each in China and the West Asia. It is running a joint venture unit at Semikhayali in the Bhuj region of Gujarat along with the GMDC and a private equity partner. Despite a minority stake of 19% in the JV, TRL has full management and marketing control.