Source - CNBC-TV18

Gallantt Metal has commissioned a pelletization plant in Karnataka in a bid of backward integration. Mr Chandra Prakash Agrawal CMD of the company told CNBC-TV18 that this plant will help reduce raw material costs by 10%.

Mr Prakash said that “A large number of clearances, including land clearances, have already been acquired. Therefore, it should be commercially operational by 2013.”

Below is an edited transcript of his interview with Reema Tendulkar and Ekta Batra.

Q - We understand this 0.3 million tonne pelletization plant which is coming up in Karnataka might be quite a kicker for the company going forward. Just take us through what sort of opportunity this would present to you and when exactly it will come on stream?

A - This is basically backward integration of our unit where we will be going in for pelletization by using iron ore resulting in a 10% reduction in our raw material prices.

Q - When will you get the clearance for this pelletization plant and also when will it be commercially operational?

A - Commercially operational somewhere in the year 2013 tentatively and a large number of clearances has already been acquired and so is the land.

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