Capacity addition to cost Binani Rs 500 cr

Kochi, Jan 19: Binani Zinc is on a major expansion spree and plans to invest Rs 500 crore for modifying its plants for capacity addition to 1 lakh metric tonne. A division of Binani Industries Ltd, Binani Zinc, with a turnover of Rs 250 crore, is on its way to be hived off to an independent unit and remain a subsidiary of the Binani Industries Ltd.
Binani Zinc president N Mohanan said that raising the company's capacity is expected to be in two phases. The smelter capacity will be raised to 65,000 metric tonne in the first phase over two to three years. This would involve an investment of Rs 350 crore. In the second phase, the capacity expansion to 1 lakh MT would be completed three to four years. This would mean an additional investment of Rs 150 crore.
Mr Mohan did not divulge how the company plans to raise the additional amount. Started way back in 1967 with a capacity of 14,000 MT of zinc per year, Binani Zinc has, over the years, raised its capacity to 30,000 MT. It was one among the two primary manufactures of zinc in the country and produced high grade zinc with 99.995 per cent purity and has state-of-the-art facilities.
President of zinc division Sushil Bhattar said the detailed feasibility study of the project had been completed. Steps had been taken for sourcing technology by entering into collaboration agreements with foreign technology leaders in zinc smelting. The environment impact assessment study was being carried out and was expected to be completed before March. The company is awaiting response from the state government with regard to its request for additional power at the normal power tariff applicable for other Extra High Tension (EHT) consumers.
At present, it uses 18 MW power and for additional power, it will have to pay penal charge at over double the rate and this would come to over Rs 4 per unit.
to diversify into lead businessBinani Industries, which has been the leader in zinc smelter through Binani Zinc is set to diversify into lead business. Mr Bhattar said the plant, with an initial investment of Rs 60 crore, is to be located at Wada in Thane and aims at recycling batteries.
A company Binani Lead Ltd has already been formed. As of now, recycling of batteries is a backyard business and a hazardous one. The company feels that it had to be taken up in the most scientific manner. Already there is existing legislation in India that batteries should be collected and the country did not have a state-of-the-art facility for this. This would be the first such venture not just in the country but in the neighbouring areas spreading to the far-east.
In the first phase having a 25,000 tonne facility, the company would need at least 40,000 tonne of battery. The facility in the factory would be such that nearly 98 per cent of the materials could be recycled. The intention is to take the capacity up to 1 lakh tonne, he added.