Jindal Poly Films to list power arm by next fiscal

BC Jindal Group’s flagship company Jindal Poly Films, which had been flying high on the back of rising demand and prices of polyester, is planning to list its power subsidiary before the end of financial year 2012.

This is not only to unlock value of the holding companies in the power venture but also to raise capital to fund its mega power plans.

DNA had reported the development on September 3, 2010.
Sanjeev Agarwal, chief financial officer, Jindal Poly Films said that the company plans to bring on-stream the first unit by March 2012 and the second unit by September 2012. Thereafter, the final unit will be commissioned after a gap of a year.

“We are exploring several opportunities including going for a QIP. We also plan to list Jindal India Thermal Power Ltd in the next one year,” Agarwal said on an analyst conference call.

Jindal India Thernal Power Ltd is targeting a power capacity of over 5,000 mw in the next five years and is currently building a 1,800 mw sub-critical thermal power plant in Angul district of Orissa. While the first unit of 600 mw is expected to be operational by December 2010, the company has already achieved financial closure and other clearances for two units.

Jindal Thermal is planning to build another plant of 1,320 mw in the same Angul district, besides another similar sized plant in Chhattisgarh—all these for its holding firm Jindal India Powertech Ltd.

Talking about the results, Agarwal said the company continued its stellar performance backed by an increased demand and prices of biaxially-oriented polyester (BOPET) and biaxially-oriented polypropylene (BOPP).

Samir Banerjee, director, Jindal Poly Films, said going forward the company does not anticipate a major volatility in the prices of BOPET and would see the price varying in the range of 5%. The current price of BOPET film is around Rs200 per kg.  He, however, said that the price of BOPP film could see a further rise of up to Rs135 per kg from Rs110 plus currently in the next three to four months, and then it would stabilise.

He said citing the massive demand of BOPET and BOPP films, the firm  expects to grow by 20% in the next fiscal.