McNally Bharat plans investment in new businesses

Kolkata, Oct 31 (UNI) McNally Bharat Engineering Co. Ltd. plans to invest Rs 200 crore over 30 months in new businesses such as coal washeries, sponge iron manufacturing facilities and contract mining.

The company was in talks with Steel Authority of India Ltd. to set up a sponge iron plant with an annual capacity between 100-500 million tonnes, Managing Director Srinivash Singh told reporters here today.

The investment from the new businesses would be funded from internal accrual and debt.

Mr Singh the company would also invest between Rs 15-20 crore to treble manufacturing capacity for material handling and heavy engineering equipment.

The company expects a 64 percent rise in its fiscal 2006/07 revenue and a 27 percent rise in the next year on the back of rising orders.

"We have good backlog and orders worth Rs 2000 crore. We expect orders worth Rs 500 crore this year," Mr Singh said.

The civil engineering firm posted a revenue of Rs 335 crore in 2005/06 and expects to post a revenue of Rs 550 crore in 2006/07 and Rs 700 crore in the following fiscal, he said.

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