The Hindu : Business : RINL to wipe off accumulated losses

Online edition of India's National Newspaper
Wednesday, Apr 27, 2005

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Business

RINL to wipe off accumulated losses

Special Correspondent

Thrust on tapping niche market for exports

KOLKATA: Rashtriya Ispat Nigam Ltd (RINL) will be able to wipe off its accumulated losses of about Rs. 1,000 crores within the next four to five months, its Chairman-cum-Managing Director, Y. Siva Sagar Rao, said.

Addressing a press meet here he said the company would now enter a consolidation phase after its turnaround in 2003-04.

In 2004-05, the turnover stood at Rs. 8,181 crores and a net profit in the range of Rs. 1,900-2,000 crores was likely to be reported. RINL's interest burden at Rs. 10 crores in 2004-05 was Rs. 40 crores lower than 2003-04.

Tapping the niche market for exports was one of the thrust areas for RINL and some specialised products have been identified, he said. He was hopeful of getting the Centre's nod for RINL's Rs. 8,000 crore expansion plan "within the next two months," adding that the plan was to raise capacity to seven million tonnes by 2007-08. "The plant's layout provides for ten million tonnes," Mr. Siva Sagar Raosaid.

Mr. Rao said even as the company explored its options on entering into a joint venture with NMDC it had applied for four blocks of iron ore in Orissa and some blocks in Rowghat in Chhatisgarh.

He admitted that with a near-doubling of raw material prices (especially imported coking coal) the current fiscal would be a challenging one.

RINL, he said would try to absorb the impact of most of the increased cost of a production but a price increase could not be ruled , depending on the situation.

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