Diversification to Cope with Demand Recession

Diversification to Cope with Demand Recession Hansavivek HINDUSTAN DEVELOPMENT CORPORATION (HDC) is further expanding and diversifying its activities. It has got a letter of intent for setting up a composite steel plant at Malanpur in Bhind district of MP with a capacity of 1.25 lakh tonnes per annum. The company has finalised an area of 100 acres of land in consultation with the state government for establishing the project. Technical consultants to the project have been selected and some of the quotations for major plant and equipment have also been received. Meanwhile, the company is seeking approval of the government for setting up a galvalume steel sheet project with a capacity of one lakh tonnes per annum, for which foreign collaboration has been already tied up. The company has also applied for setting up a cynauric chloride project with a capacity of 1,650 tonnes per annum at the existing site at Cyanides and Chemicals at Olpad in Sural district of Gujarat. To finance these projects and for other financial requirements, the company has planned to raise Rs 125 crore by issue of debentures. Accordingly, borrowing powers of the board are proposed to be raised to Rs 250 crore.