Walchandnagar Ind eyes expansion, plans JV with Russian co

Below is a verbatim transcript of JL Deshmukh’s interview with CNBC-TV18’s Ekta Batra and Reema Tendulkar. Also watch the accompanying video.

Q: We understand that you are possibly in talks with Russian company with regards to a JV or a tie-up; can you give us more details on that?

A: Yes. We are for last 40 years making nuclear equipments for nuclear power corporation and with this new nuclear plants coming up we had been engaged into discussions with several companies and along with that amongst them with Russians we already have a MoU reached for manufacturing jointly within India the needs of NPCIL about the nuclear power plant. Before that we were investing into this and the discussions are in the advanced stage and we are working out the details of this joint venture work with Russian company Rosatom.

Primarily, that’s up to the company AEM and those people will be visiting us within a week or so and provide further details on the developing joint business plans and finalising the manufacturing facilities and components and so on.

So, in order to help that we already have taken certain steps with respect to acquiring land at Dahej, around 60 acres of land near the waterfront and also at Walchandnagar, we have already installed large amount of capital equipments. Within these both facilities, what is existing now and well as what are the new facilities that will come up later. We plan to make along with the Russian company’s nuclear power major components and supply it to the nuclear power corporation.

Q: So could you tell us when is likely to be completed because you indicated that the discussion is in the advanced stage. What’s the size of this manufacturing plant that is under consideration and also that the investment in this that you would be comfortable with?

A: Now these are still under the discussion, so I can’t give you the numbers right now. However, I expect that within next 6 months or so our business plans and everything will get finalised. I think that is a time when we could share with you details. But this facility is likely to come up within 18-24 months.

Q: You indicated that you are under discussion with many other companies as well for setting up increasing you nuclear base. Could you tell us your standalone plans in terms of increasing your nuclear capacity, the manufacturing and also the kind of investment again?

A: In manufacturing nuclear plants, discussions on General electric, Areva and so on, are going out about evaluating those. This facility is even though there with Russian as a joint venture but that can also cater for the other requirements what will come up from other customers.

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