Everest Kanto set to commission its fourth plant

Everest Kanto Cylinder, EKC, a leading player in the high-pressure seamless gas cylinder segment, is all set to commission its fourth plant, being established at a cost of Rs 107 crore (Rs 1.07 billion), report agencies.

Announcing the company's maiden entry into the capital market to raise Rs 90 crore (Rs 900 million) to partly fund the project, Prem K Khurana, Chairman and Managing Director, addressing a press conference, said the new plant at Gandhidham in Gujarat was expected to go on stream by middle of next month.

He said the company's initial public offer, IPO, would remain open till November 25 and the price band had been fixed at Rs 140-160. The final price of equity shares of Rs 10 each for cash, at a premium, would be determined through book building process, he said.

''We intend to deploy the entire proceeds from the issue for part funding the new Greenfield project,'' he said, adding the company had availed a term loan of Rs 15 crore (Rs 150 million) from Citibank.

The new facility would have a total production capacity of 3.4 lakh units and to begin with, it would start operations with the production of one lakh units of industrial cylinders and another 1.4 lakh units for medical cylinders, he said.

As part of the company's strategy to operate globally, EKC had signed a Memorandum of Understanding, MoU, with Jahad Tahghighat Group in Iran for marketing cylinders for CNG-operated vehicles and once the political situation in the country was stablished, it would set up its manufacturing unit in Iran.

EKC was already operating a unit in Dubai and had set up a joint venture Gangzhou Gas Corporation, a government-owned company in China, engaged in cylinder manufacturing, Khurana said. EKC held 65% equity in the joint venture, he added.

Claiming that EKC enjoyed 90% market share in the country, Khurana said the company also supplied cylinders to 20 foreign countries. ''We are forced to expand as the orders are pouring in. In Dubai we have orders for eight months and in India for four months''.

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• IPO to fund Gandhidham project: Everest Kanto Cylinder
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