Mithun Roy

Mumbai: Euro Group, well known for its vitrified tiles, plans to diversify into steel business.

The group plans to set up a 2 million tonnes per annum iron ore pelletisation plant in Jabalpur, Madhya Pradesh. Around 70% of the output will be exported and the rest sold domestically.

The project would soak in an investment of about $250 million.

The company has acquired land for the plant, but needs iron ore mining leases from the government.

It is also planning a captive power plant, though further details were not available.

Meanwhile, merchant banking sources said group company Euro Multivision Ltd is likely to raise Rs150 crore depending on the market condition, as it had already filed a prospectus for an initial public offering.

The CD manufacturer, Euro Multivision is venturing into the manufacture of solar photo-voltaic cells, which have high demand in Europe and America.

Paresh Shah, director, Euro Ceramics told DNA Money, “The group is diversifying into steel business and the plant in MP is expected to be operational by 2011.”

Analyst Surya Narayan Nayak of Networth Stock Broking wrote in a recent report that Euro’s revenue is set to grow at a 37% compounded annual growth rate during 2007-09, as against the industry’s 15-20%.

The group is known for Euro Ceramics, which is engaged in the manufacture of vitrified ceramic tiles and aluminium extruded sections.

Source : DNA