Orissa Govt allots iron ore mines at Keonjar to Adhunik Metaliks

Mumbai, July 18 (UNI) Adhunik Metaliks, flagship company of Kolkata-based Rs 1200 crore Adhunik Group, has received the allotment of iron ore mines at Kulum in Keonjhar District of Orissa valid for a period of 30 years.

Briefing newspersons here today, its managing director Manoj Aggarwal said the mines, considered highly rich with content of iron at over 65 per cent, would provide huge benefits to the Company in terms of assured raw material supply at a very low cost.

''The better quality of iron ore in the mines will result in improved efficiency of plant and better quality of finished products,'' he said.

The detailed project report for mining is currently under prepartion and the operation will commence within a period of 6-9 months, said Mr Aggarwal.

He said with the commencement of the mining, the cost per tonne of iron ore would come down by more than 50 per cent from its current level which would help in improving the profit margin of the Company substantially.

Meanwhile, the Company has recently acquired Unistar Galvanisers and Fabricators -- a company engaged in manufacturing of sub-station structures and transmission towers -- for an undisclosed sum. These products are being utilised in Power and Telecommunication sector by NTPC, Power Grid Corporation of India, BHEL and Bangladesh Power Development Board.

Replying to a question, Mr Aggarwal said the Group proposes to merge Neepaz Tubes, a company in Adhunik Group, having the allied activities to leverage on the strength of Unistar Galvanisers. The aforementioned acquisition will help the Company in forward integrating its existing product line and improved top line as well as bottom line.

UNI SN MAZ VKG1720