Mukand Sells Thane Plot To Vodafone Essar For Rs 42.5 Cr

Mukand Limited has sold its 5-acre plot in Thane to Vodafone Essar Shared Services for Rs.42.5 crore.

Mukand is selling its properties in Mumbai and in its vicinity to reduce its long term debt which is at around Rs.1,600 crore and also for its expansion plans. It has around 55-acres of land at Kalwa, which it also plans to sell.

In 2005, the company had sold its 25-acre plot at Kurla to Offbeat Developers and Gracework Technologies for Rs.221 crore.

Transaction Reference: ET

Mukand, which is a part of the Bajaj Group, is in the business of making and is looking to sell off its non-core operations to help raise funds to cut its debt. It supplies its high grade steel products to most auto companies including Bajaj Auto, Hero Honda, Maruti and other companies.

Mukand that makes wire rods, steel castings and alloy steel parts for various auto components returned to the black in 2009-10 posting a net profit of Rs.62 crore, compared to a loss of Rs.187 crore in 2008-09.

The company has spent about Rs.350 crore to expand capacity at its two units in Hospet and Kalwa. For lowering other costs, it have applied for an iron ore mining licence in Karnataka and will start using coke from the mines allocated to it in MP and Jharkhand.

The government recently allocated coking coal mines to a consortium of companies including Mukand, where the share for the Mumbai-based steelmaker came to about 13 million tonne. In Jharkhand it has a 10 million tonne non-coking coal mine. The steel maker uses about 0.5 milion tonnes of iron ore annually.

Last week, Neepa Real Estate group bought the 18-acre Borosil land deal at Marol for Rs.830 crore.

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