Monnet Ispat to merge with Monnet Power

Monnet Ispat to merge with Monnet Power

According to recent news in the market, sponge iron producer Monnet Ispat, located in Chattisgarh, India is planning to merge its own power arm Monnet Power. Proposal for a merger by Monnet Ispat is to be presented to Monnet Power on December, 13. An official from Monnet Ispat expressed that the lenders stated their opinion regarding merger of two companies to Monnet Ispat. Monnet Power has recently expanded its capacity to 45 MV and expects a turnover of Rupees 1 billion ($22 million) in the coming year. With the merger of the two companies, the turnover is expected to reach 3 billion ($66 million), as a result of strong demand. Monnet Ispat obtained a turnover of Rupees 1.84 billion ($40.5 million) in 2002-2003 fiscal year through its sponge iron and steel division. Monnet Ispat official stated that they expect the merger to be completed by the end of current fiscal. Monnet Ispat established Monnet Power in 1998 with the purpose of meeting its sponge iron business requirements. Monnet Ispat also stated that they established a separate company, called Monnet Power as steel business was not profitable in those years.