Ashapura Minechem announces major investments in Gujarat and Kerala

Mumbai, June 15 (UNI) Bauxite major Ashapura Minechem will set up a Rs 2,500 crore Alumina Refinery in Kutch, Gujarat, for which the company has partnered in a 50:50 basis with a Chinese firm QTX.

Slated at a 2:1 debt-equity ratio, Rs 800 will be raised from equities while Rs 1700 will be mopped up from long term loans.

The project, expected to take off by October after availing the necessary environmental clearances, will be completed within two years, said Ashapura MD Chetan Shah to reporters today.

''The project will be set up in two phases at a total cost of Rs 2500 crore. QTX will buy 75 per cent of total production while rest will be sold in open market. We are expecting to take the advantage of tremendous shortage in Chinese market'', Mr Shah said.

Company has also plans to pump in Rs 80 crore in Kerala to set up a processing plant to produce Hydrous Calcined, Hydrous Non-Calcined, Dry Calcined and Spray dried Kaolin.

Ashapura's net profit for FY07 grew by 99 per cent to Rs 130.22 crore while total income posted a 32 per cent growth to Rs 1277.07 crore compared to Rs 855.17 crore in last fiscal.

On bauxite segment, against an export of 1.3 billion made last year, company has set a target of Rs 5 billion in FY08.

''China is our greatest consumer in bauxite segment and we are looking forward to tap the Rs 21 billion tonne bauxite requirement in China.'', he added.

Company had entered in a strategic 50:50 JV with AMCOL International Corporation, USA in 1997 to make value added products from Bentonite.

UNI