SMC Power Generation Ltd

About the Company :

SMC Power Generation Ltd. (SPGL), a public limited company, was promoted in November 2000 by the Aggarwal family, namely Mr. S.C. Aggarwal, Mr. M.C. Aggarwal, and Mr. C.P. Aggarwal. The company is a part of the SMC group which has diversified interests including dairy product companies by the name SMC Foods and Creamy Foods and a tobacco company by the name of Aggarwal Zarda Factory Private Limited. The company has an integrated steel plant in Jharsuguda, Orissa having a manufacturing capacity of: sponge iron (200,000 tonnes per year), billets (250,000 tonnes per annum), TMT bars (100,000 tonnes per annum) and captive power plant of 33 MW per annum.

As a part of its capacity expansion, the company plans to expand its manufacturing capacities to following levels: sponge iron (400,000 TPA), billets (325,000 TPA), TMT bars (200,000 TPA), pig iron (200,000 TPA) and captive power (83 MW). The estimated total project cost for this expansion is Rs. 847.5 crore, proposed to be funded by equity of Rs. 60 crore, internal accruals of Rs. 207.5 crore, unsecured loan from promoters of Rs. 20 crore and debt of Rs. 560 crore.

However the company has incurred capex of around Rs 193 crore towards the project till May 2012 and has subsequently put the balance capex plans on a hold.
SPGL has also been allocated an iron ore block in Keonjhar district of Orissa and it also owns a part stake in a coal block in Orissa. However the mines are not expected to operational at least for the next 2-3 years as the mines face land acquisition and development risks.