KIOCL, formerly known as Kudremukh Iron Ore Company Ltd, is planning to invest about Rs 25 billion for setting up a 1.2 million tonne pellet plant in Visakhapatnam.
Why this is important?
Company after loosing its iron ore mining lease in western ghats has managed to set up pellet unit in Vizag. After incurring losses in 2015-16 due to absence of captive mines, the company had turned around to post a net profit of Rs 479 million in 2016-17.The company is also slowly diversifying its product portfolio to boost profitability.
Allocation of a captive mine has provided much needed respite to the state-owned entity, which is operating a 3.5-million tonne per annum pellet plant in Mangaluru.
Stock to be impacted?
New plant and planns to manufacturing Di pipes are positive for the company, (CMP Rs 191, M. Cap 12,125 crs, P/bv 5.58)