Vedanta seeks $1 billion in upsized share placement
Vedanta is joining a slew of Indian companies tapping stock investors amid surging valuations and increasing demand for equity investments in the country.
Joy Global subsidiary P&H Mining Equipment is to invest $25 million in setting up a manufacturing and servicing facility for high-end mining equipment near Durgapur in West Bengal according to a report in India’s Economic Times. The new facility will serve P&H’s diversified customer base in the country’s mining belt in the eastern region including states like Jharkhand, Orissa and West Bengal. P&H’s biggest customers include Coal India and Reliance Power but also Singareni Collieries, Hindustan Zinc, Hindustan Copper and Tata Steel.
P&H Director Anirudhha Gupta stated: “We expect significant growth in mining activity in the eastern region, with projects like JSW Steel at Salboni and expansion of mining activity by Steel Authority of India Ltd, both in coal and iron ore. We have set a target date of commissioning the first phase of our project by 2013. Initially, we will set up a fabrication unit for mechanical structurals. To start with, we will manufacture the smallest machines in our catalogue.
In the second stage, we will start making the transmission equipment and finally in the third phase we take up the electrical parts. However, we are yet to firm up our investment road map for the second and third phase of our project.”
According to the report, this will be the second largest US investment in Bengal since Pepsico’s Frito-Lay set up its unit in the state in 2004. P&H has taken up 25 acres for its facility inside an industrial park being set up by Bengal Aerotropolis Projects Ltd (BAPL) in the Asansol-Durgapur area.
For the first time in India, P&H Joy Mining will also offer a ’smart’ service out of its new facility using a satellite-based system for remote monitoring of mining equipment on real time. “The service is popular among Joy’s global clients in South Africa, Australia and the US and it helps reduce machine down time significantly. Since these machines cost upwards of $20 million, this adds to the productivity too. The service will be based on ‘Prevail’, a proprietary software developed by Joy Global Inc,” Gupta was quoted as saying.
