India: Binani seeks power entry

India: Binani seeks power entry
30 September 2013

Theh Binani group is planning to enter the power generation sector, mostly through acquisitions. The Indian company already has a presence in cement, zinc and glass fibre sectors, but sees the energy market as its next logical way to progress.

Binani Industries, the listed entity of the group, is the holding company for Binani Cement and Binani Zinc, both of which were delisted from the bourses. The group has already begun a process of transferring group holding outfit Binani Industries' 100 per cent shareholding in Binani Energy Pvt Ltd to Binani Cement Ltd. Binani Energy will now be used in acquiring thermal power assets and also to set up its own plants at a later stage, sources told Diligent Media Corporation Ltd.

"We have plans for the power sector but those things need to go to the board first. Before that, we don't want to make any further statements," Braj Binani, the chairman and promoter of the group, told DMC.
With the transfer of its captive power units of about 70 MW to its subsidiary, Binani Energy is now catering to about 90 per cent of Binani Cement's demands and plans to supply power to the glass fibre, zinc and other manufacturing units.

The group's effort to dilute up to a 40 per cent stake in its cement business may, however, get delayed due to adverse investor sentiment, Braj Binani told shareholders.

Published under Cement News

Tagged Under: Power Binani Cement India