Surya Roshni to invest Rs 20k cr to set up steel, power plants
Press Trust of India / New Delhi Feb 10, 2010, 14:40 IST
Lighting major Surya Roshni today said it will invest Rs 20,000 crore in the next few years for setting up steel manufacturing and power plants, through an associate company.
"We are planning huge expansions for the Surya Group. We are planning to set up a 1,000 MW power plant and a steel plant with a capacity of 5 MT per annum, both in Karnataka," the company's Chairman and Managing Director J P Agarwal told reporters here.
He said the total investment in these two projects would be around Rs 20,000 crore, which the company will raise through a mix of debt and equity.
"We will also bring an IPO (initial public offering) for these projects which will be operated through a different company called Surya Vijaynagar Power and Steel and we will also rope in foreign investors for the purpose," Agarwal said.
However, he declined to give further details saying that specifics are yet to be worked out.
Surya Roshni also announced the launch of energy efficient T5 and T8 tubelights, which it claims can save up to 85 per cent power.
Speaking about the company's other plans, he said Surya is also setting up two steel pipe manufacturing plants in Gujarat and Madhya Pradesh with a total investment of around Rs 550 crore.
Surya Roshni reported a revenue of Rs 1,750 crore in the last fiscal and is expecting a turnover of Rs 2,000 crore in the FY10.
As the two new pipe plants would start production in the next fiscal, the company is aiming for a turnover of more than Rs 5,000 crore by 2011-12.
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