Jayaswal Neco plans Rs3,300 crore expansion

Jayaswal Neco Industries Limited, flagship company of the Neco Group of Industries, has plans for Rs3,300 crore expansion in steel, mining and captive power projects.

The company is in the planning stage of the expansion of its 0.1 MTPA coke oven plant. Its expansion plans include expansion of its  steel melt shop by 0.45 MTPA and rolling mill by 0.35 MTPA, modernisation of its existing wire rod mill, setting up of a 0.3 MTPA sponge iron plant, setting  up 62 MW captive power plants, development of its non-coking coal mines along with 3 MTPA coal washery and development of its iron ore mines in Chattisgarh as also development of its coking coal mines with 1 MTPA coal washery in Jharkhand.

The company has planned to double its turnover by 2014 with the expansion. The Neco Group promoted by Basant Lall Shaw is a renowned industrial group with a turnover in excess of Rs 2,500 crore. The group has a fixed asset base of around Rs 2,000 crore and net worth of around Rs1,000 crore.

Neco also ranks as one of the major integrated steel producers in the country with an installed capacity of 1 million TPA. It is also the largest manufacturer of ferrous castings in India producing more than 0.1 MTPA including machined castings.

Neco's product line also includes industrial valves and auto components and is one of the largest industrial valve manufacturers in the country.

For its Rs3,267-crore expansion the company has tied up debt of Rs2,143.50 crore and the rest Rs1,123.50 crore would be the equity part. The company has received funding for the expansion from ICICI Bank, State Bank of Travancore, UCO Bank, Union Bank of India and United Bank of India.