Mukand Ltd part of Bajaj Group plans to reduce it INR 1,350 crore debt by more than half in a year by selling off surplus land at its plant in Kalwa, on the outskirts of Mumbai and utilizing internal accruals.
Mr Niraj Bajaj CMD of Mukand said that the company has identified surplus 60 acres to 100 acres at its unit at Kalwa, and expects the land to fetch over INR 700 crore.
He added that “The fund along with enhanced internal accruals will more than halve our debt in the next one year.”
With no major expansion planned in the near future, Mukand will add a better half of the profits to internal accruals, which will help the company trim the debt.
Mr Bajaj informed that “The company has completed INR 350 crore expansion of its capacity from 300,000 tonnes to 500,000 tonnes of high quality specialty steel during the second quarter of 2009-10. It will take another five months for the plant to stabilize and start production at its full enhanced capacity.”
As per report, Mukand Bekaert Wire Industries has also commenced production of stainless steel wires at Nashik.
(Sourced from Business Line)
