Sterlite incident clouds PCBL's proposed Tamil Nadu unit

PCBL chairman Sanjiv Goenka said the "rethink" was compelled by the Sterlite incident that rocked Tamil Nadu in May.

Violent protests had erupted in Tamil Nadu's Tuticorin in May this year demanding closure of Sterlite's copper smelter plant that killed 13 people.

"We are rethinking on the site of Tamil Nadu and evaluating other two states of Andhra Pradesh and Telengana for the 1.5 lakh tonne greenfield plant. However, we have not written-off Tamil Nadu," Goenka said.

However, Goenka said, PCBL would zero in on the location by September this year. The company holds land in Tamil Nadu.

Meanwhile, the greenfield and brownfield expansions at Mundra and Palej in Gujarat would raise the country's largest carbon black maker's capacity by another 50 per cent to seven lakh tonnes, Goenka said.

He said the company is open to raise capital through Qualified Institutional Placement (QIP) but it would not comie in the way of funding greenfield project.

"The projected cashflow for the next two years is Rs 700 crore, so there is no constraint of funds. But, still we are looking to reduce overall long-term debt close to nil," Goenka said.

The company was evaluating raising Rs 400-600 crore through equity route, possibly through QIP.

Meanwhile, PCBL's Q1 net profit ended June was up 103 per cent to Rs 97.54 crore.

Revenue from operations during the period under review was at Rs 781.42 crore, as against Rs 640.24 crore during the corresponding period of FY18.