Videocon forays into steel
The Videocon group has made a foray into the value-added steel and power segment. The Dhoot-promoted company has chosen West Bengal for the new venture and will be setting up a 3 million tonne integrated plant in Burdwan district for an investment of Rs 1,500 crore.
Videocon has floated a special purpose vehicle called Videocon Natural Resources Ltd—a 50:50 joint venture between the Dhoot brothers and a mining and power company based in the US.
The new entity will subsequently be listed on the stock exchanges.
Videocon's maiden steel and power venture will come up on a 3,000-acre plot at Barabani, which will also house a 1,200 mega watt (MW) power plant. Videocon Chairman Venugopal Dhoot said the company had already identified the land and acquisition would not be a problem since there were few inhabitants. The West Bengal Industrial Development Corporation is likely to acquire the land and the compensation for land is yet to be worked out.
The project will begin within three months and commercial production of steel is expected in three years' time.
According to Dhoot, the value-added steel will be used in the automotive and ship-building sectors.
Videocon has a headstart in basic engineering through its exposure in oil and gas.
Videocon may also set up a second plant at a later date depending on the success of its foray. Dhoot said the location of the plant would ensure assured coal linkage and easy access to minerals from neighbouring states.
Videocon is already present in the state in the areas of consumer electronics, information technology, biotech and food processing.