Binani group mulls power play via acquisitions

Binani group, which has a presence in cement, zinc and glass fibre, plans to foray into power generation, mostly through acquisitions.

The group has already begun a process of transferring group holding outfit Binani Industries’s 100% shareholding in Binani Energy Pvt Ltd to Binani Cement Ltd.

Binani Energy would now be used in acquiring thermal power assets and also to set up own plants at a later stage, sources told dna.

“We have plans for the power sector but those things need to go to the board first. Before that, we don’t want to make any further statements,” Braj Binani, the chairman and promoter of the group, told dna.

Binani Industries, the listed entity of the group, is the holding company for Binani Cement and Binani Zinc, both of which were delisted from the bourses.

With the transfer of its captive power units of about 70 MW to its subsidiary, Binani Energy is now catering to about 90% of Binani Cement’s demands and plans to supply power to the glass fibre, zinc and other manufacturing units.

At the next stage, the energy subsidiary plans to set up 120 MW plant near its captive lignite mine at Nimbri in Rajasthan, which has extractable reserve of about 5.5 million tonne.

“The scheme for transfer of the power undertaking of Binani Cement to the subsidiary has already been filed with the Calcutta High Court,” Binani said.

Power would be Braj Binani’s third recent diversification.

In 2012, Binani Industries acquired a Belgian glass fibre maker for Rs 1,700 crore, while it has recently ventured into engineering, procurement and construction or EPC services by setting up a subsidiary BIL Infratech.

The group’s effort to dilute up to 40% stake in its cement business may, however, get delayed due to adverse investor sentiment, Braj Binani told shareholders.