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May 4, 2001
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Money > Business Headlines > Report May 4, 2001 |
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Binani Inds may put glass fibre division on the blockRumi Dutta Binani Industries, following its inability to rope in a strategic partner for its glass fibre business, is now exploring possibilities of putting up the wholly owned subsidiary on the block. The company, which has identified the business as a non-core area, has been making efforts to make viable for some time now. Senior company officials said, "Our non-ferrous metal and cement business have been identified as core areas. We may look at selling off the glass fibre business if we get the right price. We have been approached by some interested parties but were not happy with the price offered by them." The Binanis entered the glass fibre trade in the mid-1990s and the unit in Goa was commissioned, the largest glass fibre unit in the country, in March 1996. Eventually, as a part of a restructuring exercise, the project was transferred to Goa Glass Fibre, a wholly owned subsidiary of Binani Industries, as it was eating into the company's bottomline. At that point of time it was a profitable business as there were lesser number of players, both domestically and globally and the technology was restricted to a few players. Gradually, the situation worsened as a result of an increase in input costs. Binani Industries has sourced the technology from Bishop Technology of US. Now the company is determined to grow as a non-ferrous metals and cement player. In the cement industry, the company plans to establish its foothold in the northern and western markets. "The cost of producing cement is the lowest in India and there exits a huge growth potential. Though we have been approached for our cement units we plan to hold on to the cement business." The company, as per plans to expand its zinc business, is bidding for a 26 per cent stake in Hindustan Zinc. Besides, it is raising its zinc smelter capacity to 100,000 tonne in two phases over five years with an estimated investment of Rs 5 billion. Meanwhile, the 150,000 tonne primary and secondary lead smelter project planned at Wada in Maharashtra is also in the pipeline. Powered by YOU MAY ALSO WANT TO READ:
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