VRL Group plans foray into cement business

VRL Group plans foray into cement business

BUSINESS STANDARD Mahesh Kulkarni|2010-03-29 01:10:00

Hubli-based transport tycoon, Vijay Sankeshwar, who operates India’s largest road transport company, VRL Logistics Ltd, is foraying into cement manufacturing business. He has formed a new company, VRL Cements Ltd, with his son Anand Sankeshwar and other family members to set up the cement unit. The company has proposed to set up a 2 million tonne per annum greenfield cement plant for an investment of Rs 954 crore in north Karnataka.

"We have submitted a proposal to Karnataka government which is developing a cement zone in the Gulbarga and Bagalkot region. We have sought land from the state government. Once the project is approved by the high level clearance committee and the land is allotted, we will prepare a detailed project report for the path ahead," Vijay Sankeshwar, Chairman, VRL Group told Business Standard.

He said, to begin with, he along with his son, will put in the promoters’ equity contribution of Rs 100 crore to start the project. The balance funds will be raised from the market to set up the greenfield cement plant. VRL Cements has sought 300 acres from the state government in Badami taluk of Bagalkot district which has abundant reserves of limestone, a key raw material for the cement industry.

The company’s proposal is presently awaiting the nod from the high-level clearance committee. The cement facility is expected to create 180 jobs. As part of the project, VRL has also proposed to set up a 50 Mw coal-based captive power plant.

Sankeshwar said VRL Cements plans to manufacture cement clinkers, Portland cement, Portland slag cement, white cement among others. Initially, the company plans to market its products in Karnataka, Goa, Maharashtra and Kerala.

"The key requirement to succeed in the cement business is a good logistics network and we already have a vast network across the country. VRL is an extremely well known brand in the whole of south India and we will leverage the strength of our brand name to establish cement business," he said.

As regards sourcing of limestone, VRL Cements plans to form a joint venture with MML, a state-owned mining company, he said.

VRL Logistics is India’s largest road transport company, which operates 1,620 vehicles (232 buses and 1,388 trucks). The company, which reported a turnover of Rs 600 crore in 2008-09, is likely to end the present fiscal with a growth of 15 per cent.

Karnataka is the seventh largest producer of cement in the country. There are 16 cement plants in the state producing around 11 million tonnes per annum, which is about 6.5 per cent of India’s production.

The state has limestone deposits of about 17,253 million tons, about 22.5 per cent of India’s reserves.

The Karnataka government has approved 19 cement projects in the last three years with a total capacity of 44 million tonnes per annum, including those of Lafarge of Switzerland and Heidelberg from Germany. The state government expects to add at least 20 million tonnes of cement by the end of 2011.

Hero Honda to set up Rs 2,000 cr manufacturing plant in Karna

Hero Honda to set up Rs 2,000 cr manufacturing plant in Karna

28 Mar 2010, 1444 hrs IST, PTI

BANAGALORE: Karnataka government is alloting 500 acres near the northern district headquarters town of Dharwad to Hero Honda to set up a Rs 2,000 crore two wheeler manufacturing plant with annual capacity of one lakh units, Large and Medium Industries Minister Murugesh R Nirani said.

"Hero Honda is coming.We are going to give them 500 acres near Hubli airport near Dharwad.They are investing Rs 2,000 crore. They need 1,000 skilled workers. It will have annual capacity to manufacture one lakh two-wheelers", he told PTI.

He also said he would hold second round of discussions with South Korean steel major Posco in Seoul in April first week regarding the company's plans to establish a six-million tonne annual capacity steel plant with an investment of Rs 32,000 crore in Karnataka.

Nirani said discussions would also be held with the TVS group in the next few days on the possibility of the latter putting up an engine manufacturing unit in the State.

State-of-the-art kitchen opens at Hubli railway station

State-of-the-art kitchen opens at Hubli railway station

TNN, Mar 27, 2010, 10.21pm IST

HUBLI: Minister of state for railways, K H Muniyappa, on Saturday said the catering services of the railways is in for a major overhaul.

Speaking after inaugurating Cell Kitchen at Hubli railway station, he said a survey conducted by IRCTC revealed that over 50% of passengers were not happy with the quality of food being supplied in trains while 15.09% and 13.73% passengers were upset with bedroll and overcharging, respectively.

Muniyappa said IRCTC has taken steps by introducing hamper system in base kitchen, conducting food and hygiene audit, centralized rate contract for reputed branded quality product, signed MoU with HPCL for smooth supply of LPG and adoption of fuel-efficient practices in kitchens.

He said IRCTC is taking up the challenge of improving the quality of catering services, spreading awareness among the passengers to curb overcharging, and ensuring cleanliness in compartments, etc.

Cell kitchen

The Cell Kitchen launched in Hubli railway station is the first state-of-the-art kitchen in South Western Railway zone and 20th in Indian Railways. Built at a cost of Rs 45 lakh, the kitchen has modern equipment like steam cooking, cold storage room, dish washing system, etc.

The food prepared in Cell Kitchen will be supplied to pantry cars and stalls. Cell Kitchen is mandated to provide quality coffee, tea, breakfast, meals at regulated prices.

Water sports catches up in Hubli

Water sports catches up in Hubli

Express News Service 16 Mar 2010 08:48:51 AM IST

HUBLI: There has been overwhelming response to the adventure water sports festival organised for the first time in Hubli. Braving scorching heat, hundreds of people including children and women are thronging the Unkal lake to take part in the thrilling events.

The five-day festival is organised by State Youth Affairs and Sports Department in association with General Timmaiah National Academy of Adventure Sports and the district administration.

According to organisers over 1200 people were being trained in water sports as part of the festival. About 30 instructors from the academy and the Sports Department have been training and guiding people taking part in adventure water sports in the lake.

Facilities and equipment have been made available for taking part in sports like rafting, water scooter, canoeing, carole ride, kayaking, water-skiing and wind surfing.

Before taking up an exhilarating ride on water, life-saving jackets will be given to the each person as a precautionary measure.

Shabbir, the team leader of trainers at the festival told Express that allaying fear about water among people, particularly the youths, is the aim behind organising the event. We have already organised the adventure water sports festival in Karwar, Mangalore, Davangere, Manglore, Udupi and Hassan. We are also planning to organise it in other cities where there are lakes, he said.

Many youths at the venue said that they were thrilled to take part in water sports for the first time.

Adventure water sports to begin on Saturday

Adventure water sports to begin on Saturday

TNN, Mar 12, 2010, 10.36pm IST

DHARWAD: The department of youth services, in association with General Timmaiah National Adventure Academy, will organize a five-day adventure water sports camp at Unkal Lake from Saturday.

DC Darpan Jain told reporters here on Friday that the meet will feature water skiing, canoeing, water scooter and surfing among others. Experts from the academy will guide the participants at the camp. Minister for youth services and sports Goolihatti Shekhar will inaugurate the meet on Saturday at 1 pm.

The DC said plans were afoot to introduce more adventure sports in the district by developing hillocks and water bodies. Para-gliding, aero sports, rock climbing and other such adventure activities will be organized in the days to come, he added.

Jain said lakes at Kelgeri, Sadhanakeri, Navalur, Kalgahtagi, Navalgund and Kundgol will be developed under lake-development projects as part of environment protection programmes. Efforts are on to develop Sanjeevini Park between Dharwad and Hubli into a bird sanctuary, he added.

Karnataka makes a pitch for Hero Honda plant

Karnataka makes a pitch for Hero Honda plant

10 Mar 2010, 0302 hrs IST, ET Bureau

BANGALORE: A team from the Karnataka government led by chief minister BS Yeddyurappa met the top officials of Hero Honda Motors to impress upon the two-wheeler maker to set up their manufacturing plant in the state.

At the meeting in New Delhi on Tuesday, Hero Honda Motors team was led by chairman Brijmohan Lall Munjal and MD Pawan Munjal. The firm has shortlisted Karnataka as one of the states for setting up its fourth manufacturing plant.

A team from Hero Honda has already visited Karnataka and looked at a site in Hubli, though a final decision is likely to be taken next month after they make their second visit.

During the meeting, the Hero Honda officials raised certain concerns regarding fiscal incentives that would be possible if they are looking at Karnataka as their destination for the manufacturing plant. The state government conveyed the message that they could be given refund on value added tax (VAT) and other concessions if the investments are above Rs 250 crore.

Hero Honda has proposed an investment of Rs 2,000 crore for the plant and the state government has shown them two sites — 500 acres in Hubli and 1,000 acres near Dharwad. The Karnataka government is keen on locating Hero Honda’s project in the Hubli-Dharwad area as it wants to turn this region into a automobile hub. Dharwad already houses Tata Marcopolo Motors, which manufactures buses, and Telcon Construction Equipment company.