INDIA INDUSTRIAL BRIEFS

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Researched by Industrial Info Resources.

INDUSTRY ECONOMICS

India’s $35 Billion 2007 Global Merger & Acquisition Target

India’s share in world trade rose 0.4% in 2004 to 1.5% in 2006 and global economic engagement (export + import) covering both merchandise and services trade was up 73% at $437 billion in 2006, according to the WTO. A survey by Indian Chambers of Commerce and Ernst & Young estimated that Indian firms will spend $35 billion in 2007 on buying and merging with foreign companies. The mergers and acquisitions figure for 2006 was $15 billion. In 2006-2007 Indian companies have invested $2 billion in the U.S.

POWER

Japan’s $150 Million Boost for Maharashtra Grid

Maharashtra State Electricity Transmission Company has arranged a $150 million loan from Japan Bank for International Cooperation for replacement of transformers. The project covers 15 districts in the west of the power starved state where 18 existing transformers will be replaced in a fast track three year period in 110 substations to raise capacity by 6,675 MVA.

Haryana Super Thermal Power Plant Gets Nod

The government has cleared the 1,500 MW coal-based super thermal power project at Jhajjar in Haryana. The $2 billion project is a joint venture between National Thermal Power Corporation and the governments of Delhi and Haryana.

Heavies Compete for National Power Exchanges

There are two major companies competing to set up national power exchanges. A joint venture between NTPC, Power Grid Corporation of India, Power Finance Corporation, National Hydroelectrical Power, and National Commodities and Derivatives Exchange is up against a Financial Technologies (India) – MCX (Multi Commodity Exchange) led venture. PTC India, the country’s largest power trading firm could partner the first competitor to gain regulatory clearance. Currently over 6,000 MW of inter-regional power transfer capacity is available which is expected to rise to 9,500 MW. Short term or daily requirements account for about 15% of total power trading volumes.

METALS & MINERALS

Posco Implementing Hi-Tech Steel Making in Orissa

South Korea’s steelmaker Posco will use its FINEX technology for the proposed $12 billion greenfield integrated steel project in Orissa making the plant the most competitive in India. The technology eliminated the first step in the steel making process of sintering and coking and allows the direct use of low-cost ore fines and coal, bringing down overall plant installation and operational costs. The plant is expected to be fully operational by 2016.

PETROLEUM REFINING

$3 Billion Refinery to Integrate with $2 Billion Complex

Hindustan Petroleum Corporation is planning to partner Total and Kuwait Petroleum and Oil India to build a $3 billion Greenfield refinery at Vishakaptnam. The refinery would be integrated with the $2.2 billion petrochemical complex that the company intends to set up in the proposed SEZ zone. An aromatics petrochem plant could be built before the refinery, which is scheduled for completion in 2011.

CHEMICAL PROCESSING

Lanxess Looks at New Gujurat Plant

Germany’s Lanxess is considering setting up a Greenfield chemical plant in Gujurat and is looking at a 40-acre site near Jhagadia. The company’s India subsidiary, Lanxess ABS, is a pioneer in manufacturing acrylontrile butadiene styrene (ABS) polymer in India and has manufacturing plants at Nandesari, Katol and at Moxi where it has a state-of-the-art research and development centre. Lanxess group global sales in 2006 were $9.2 billion.

Deepak Builds Agri Market Presence

Deepak Fertilizers and Petrochemicals Corporation (DFPCL) is increasing production capacity to strengthen its position in agricultural industry. It will invest $100 million to set up a greenfield ammonium nitrate plant at Paradip in Orissa. The plant will have a capacity of 300,000 tons per annum (tpa) and will be operational by mid-2009. Land for the plant is being acquired and construction work is scheduled to start soon. The company has a 100,000 tpa plant in Tajola near Bombay.

East Asia Naphtha Demand Boosts Bharat Sales

Bharat Petroleum (BPCL) projects a rising demand for Naphtha in eastern Asian markets. This will boost the company’s naphtha sales by an estimated 25% in the current financial year. Exports are estimated to top 1 million tons from a total of 800,000 tons in the past year.

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