Ennore Coke Ltd is looking for a private equity fund to support its investment plan of around INR 700 crore over the next three years. The plan includes acquisition of coal mines overseas and sick units in India besides enhancing the production capacity.

Mr Ganesh Natarajan president & CEO of Ennore Coke said that “We are looking at investing around INR 700 crore over the next three years in expansion and acquisitions. This would help the company reach its target of around INR 2,000 crore turnover by 2011-12.”

The company would increase the total capacity to one million tonne by 2010-11 from the current 520,000 tonne at its facilities in Haldia, Orissa and Gujarat. This apart, it would enter into more contract manufacturing arrangements.

Mr Natarajan said they would require 1.4 million tonne coal by 2010-11, for which the company is planning to acquire coal mines in Australia and at Virginia in the US. He added that “The acquisition cost would be around USD 50 million (INR 240 crore).”

The proposed investment will be funded through debt and equity. He added that “We are looking at diluting up to 25% to the private equity fund.” He declined to disclose the quantum of money that would be raised. “It would vary from project to project. We are yet to take a call on the value and percentage.”

Mr Natarajan said the company would focus on small and large medium enterprises, the segment which is currently catered by Chinese manufacturers. He added that “For this, we have appointed stockiest in Belgaum, Kolaphur, Bangalore and Coimbatore which are the major foundry clusters. Customers can now buy minimum 500 kg to maximum 200 tonnes of coke.”

(Sourced from Business Standard)