Gokul Refoils plans Rs 350 cr investment in new refineries

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Gokul Refoils plans Rs 350 cr investment in new refineries

Praveen Khandelwal, vice president of corporate strategy, Gokul Refoils in an interview with CNBC-TV18 said, the company is looking at setting up two port based refineries, one in Maharashtra and the second one down South.

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Praveen Khandelwal, vice president of corporate strategy, Gokul Refoils in an interview with CNBC-TV18 said, the company is looking at setting up two port based refineries, one in Maharashtra and the second one down South.

As part of their long term objectives, the investment for these plans will be around Rs 350 crore and are looking at different ways to fund the projects. "The tentative project cost has been finalized. For the Maharashtra project, it should be near about Rs 210 crore and for the South it should be nearly about Rs 150 crore," he said.

Below is a verbatim transcript of Praveen Khandelwal's interview with CNBC-TV18's Reema Tendulkar and Ekta Batra. Also watch the accompanying video.

Q: Could you walk us through what plans you have in terms of your investment to up your capacity. We understand you are looking possibly two refineries?

A: As part of our long term strategy, we are definitely looking to setup up two port based refinery, one in Maharashtra and the other in South India. So Maharashtra port based refinery along with the solvent plant of 600 TPD and 1000 TPD of the refinery capacity and in the South we are looking at a 1000 tonne port based refinery capacity.

Q: Is this pretty much final and what's the total investment?

A: The tentative project cost has been finalized. For the Maharashtra project, it should be near about Rs 210 crore and for the South it should be nearly about Rs 150 crore. We are doing the feasibility study for both the locations and our team is working very hard for the same.

Q: How exactly will you be funding this total amount of capacity expansion?

A: We are open to options. So it will be either through debt, equity, may be QIP, may be private equity. We are still open for all types of options which are available in the capital market.

Q: What sort of proportion of funds will you be open to raising and by when?

A: It is still very early to say because our team is studying the project feasibility for the location etc. So it will be decided after the land is finalized.

Q: You mentioned that this is in the feasibility stage; if it doesn't go through what else do you have in mind, maybe some acquisition?

A: We are also open for acquisition for these locations.