Kalyani steels enters into a joint venture agreement with Gerdau S.A., Brazil; Both Gerdau and KSL to hold an equity of 45% each, in SJK Steel Plant

Kalyani Steels Ltd (KSL), a Kalyani Group company and one of the leading manufacturers of special carbon and alloy steel, today signed a Joint Venture Agreement with Gerdau S.A., Brazil. As per this agreement, both companies will have an equity partnership of 45% each in SJK Steel Plant Ltd and the remaining 10% will be owned by other investors.

SJK Steel which has been recently acquired by Kalyani Steels, is an integrated alloy steel plant located at Tadipatri in Andhra Pradesh, with an installed capacity of 275,000 tons per annum. The plant started its production of pig iron in April 2005 and is today running at full plant capacity. The Kalyani Gerdau JV plans to enhance its capacity to 1.6 million TPA of finished steel in the next few years.

One of the highlights of this investment program is the installation of rolling mills, which will allow the production of steel with higher added-value and supply to both, the automotive and civil construction industry, covering a broad range of special bar quality (SBQ) and construction products.

The Gerdau Group is a Brazilian steel company that is currently the 15th largest international steel producer. In 2006 it reported production of 15.6 million metric tons and gross revenue of R$ 27.5 billion. It has 32,000 employees and is present in twelve countries: Argentina, Brazil, Canada, Chile, Colombia, the United States, Spain, Mexico, Peru, Dominican Republic, Uruguay and Venezuela.

Kalyani Steels Limited (KSL) was incorporated in 1973. Promoted by the Kalyani Group, the Pune-based company is one of the leading manufacturers of special carbon and alloy steels, engineering and alloy steel ingots, blooms and billets conforming to international standards.



BEML diversifies into lubrication oil sector

Bharat Earth Movers (BEML), a 'Mini Ratna' company under the Defence Ministry, today announced diversification into the lubrication oil segment for engines and hydraulic and transmission systems of mining and construction equipment.

BEML chairman and managing director V R S Natarajan said the company had entered into an agreement with Mumbai-based Nandan Petroleum for marketing of the lubrication oil as 'BEML Oil.'

Natarajan said the size of the lubrication oil market was around Rs 6,000 crore and BEML expected to earn a revenue of Rs 100 crore in the first three years.

BEML, a leader in construction and mining equipment sector, plans to raise Rs 450 crore from a follow-on public issue opening on June 27.



Kalyani Steel forges JV with Gerdau of Brazil

Pune-based Kalyani Steel (KSL), makers of carbon and alloy steel, has entered into a joint venture agreement with Gerdau SA of Brazil. Both the companies will hold 45% each in the venture with the balance 10% being held by investors.

The joint venture will hike the capacaity of SJK Steel, which was acquired recently by Kalyani Steel, from the current 2,75,000 tonne to 1.6 million tonne in the next few years.

SJK Steel is an integrated alloy steel maker based in Andhra Pradesh, and the plant is spread over 900 acres. The plan is to start production of value-added steel and supply to the automotive and civil construction industries covering a broad range of special bar quality (SBQ) and construction products.

B N Kalyani, chairman, Kalyani Steels, said: "We are very happy to be associated with the Gerdau Group and partner them in their first steel venture in Asia".

André Gerdau Johannpeter, CEO, Gerdau said: "Our partnership with the Kalyani Group is essential for the success of our business because it brings new knowledge about the local market and culture."

The Gerdau Group is currently the 15th largest international steel producer with revenue of Brazillian$ 27.5 billion and presence in 12 countries.



NTPC to buy over 44% stake in Kerala-based firm

National Thermal Power Corporation (NTPC) has signed a shareholders agreement with Transformers and Electricals Kerala (TELK) and the governement of Kerala for acquiring 44.6% stake in TELK. The government of Kerala and its undertakings hold 95.6% equity of TELK.

According to a release issued by NTPC to the BSE today, the agreement will also lead to synergy in the field of manufacturing and repair of high voltage power transformers and associated equipment.

"TELK has proven expertise of over four decades in the business of manufacture, marketing and servicing of power transformers, current voltage transformers, circuit breakers, isolated phase bus ducts, shunt reactors etc. and the deal will help make the company an integrated power major," the release added.

PTI adds from Kochi: NTPC will pump in Rs 190 crore in the first phase for modernisation and expansion of TELK over the next two years.

T Balakrishnan, principal secretary (industries), government of Kerala will be the chairman of the JV, while NTPC official S Venkateshwararan would be appointed managing director.

The agreement was signed by NTPC chairman and managing director T Shankaralingam, Balakrishnan and TELK chairman and managing director P T Nadakumar in the presence of Chief Minister V S Achutanandan and industries minister Elamaram Kareem.

Achutanandan said 24 of the 67 PSUs in the state had made a turnaround and were earning profits. The rest would be made profitable within four years.

He said talks are on with the defence ministry to revive KELTEK at Thiruvananthapuram. Discussions are also being held with the Railway Board to set up a railway coach manufacturing unit at Chertala in partnership with Autokast, a loss-incurring state unit, he added.



Videocon Inds plans coal mining, power biz

The board of directors of Videocon Industries, which met today, approved a proposal to get into the businesses of generation and transmission of power, and mining coal and other minerals.

According to a release issued to the BSE today, the meeting approved alteration of the main objects clause of the memorandum of association of the company by inserting additional clauses relating to:

a. carrying on business of generation and supply of power; and

b. carrying on business of minerals and fuels and source of minerals and fuel, including mining block or mining rights for mining of minerals, including coal or other substance.

The company will now seek shareholders' approval for the above proposals via a postal ballot, the release added.



Satyam to design services for Hawker Beechcraft

Satyam Computer Services has signed a contract with US aviation firm Hawker Beechcraft to provide design and engineering services.

The multi-year, multi-disciplinary contract, announced at the Paris Air Show, will allow Hawker Beechcraft to "respond more quickly to business opportunities."

The US firm specialises in making business, trainer and special mission aircraft.

Under the deal, Satyam will establish an offshore development centre with about 40 professionals dedicated to Hawker's projects. Within a year, the number of professionals will increase to 100, Satyam said in a statement.

Satyam will provide high-end design, computer-aided engineering, analysis, product life-cycle management and other services to Hawker. The arrangement will enable the US firm to fulfil orders more quickly and within appropriate budgets, Satyam said.

Randy Nelson, senior vice president of Hawker's product development and engineering division, said: "We are pleased to have Satyam handle these critical projects and to leverage its programme management and global delivery capabilities."

Subu D Subramanian, director of Satyam's manufacturing, automotive, aerospace and defence practice, said: "Global organisations are increasingly adopting global models and relying on robust and comprehensive engineering solutions such as those Satyam will provide for Hawker."



Rolta slips after raising funds

Rolta India fell 5.37 per cent to Rs 465.40 after it raised over Rs 600 crore through a convertible bond issue. Rolta India had issued 1,500 foreign currency convertible bonds (FCCBs) of $1,00,000 each aggregating to $150 million.

The bonds will be listed on the Singapore Stock Exchange. The conversion price for the FCCBs is Rs 737.40 a share, at 50 per cent premium over Thursday’s closing price of Rs 491.80 a share.