Mumbai/ Ahmedabad: Aims to go public in future for project.

With a Rs 4,000 crore investment lined up for a possible five million metric tonne cement plant in Gujarat, Surya Group is mulling public issue of its subsidiary company Surya Global Cement Ltd. in the near future.

Having commenced production of its first factory in Gujarat of GI and API pipes at an investment of Rs 400 crore, the group now intends to sign a memorandum of understanding (MoU) with the state government for a mega cement plant in Kutch district at the upcoming Vibrant Gujarat Global Investors' Summit (VGGIS) 2011.

"We have already written a request letter to the Gujarat government for setting up of a five million metric tonne cement plant in Kutch district. We may also be signing an MoU in this regard in the upcoming investors' summit. The plant is likely to commence production within two years from approval from the state government and will envisage an investment of Rs 4,000, part of which will be raised through public issue of our subsidiary company, apart from bank loans," said Jaiprakash Agarwal, chairman, Surya Group.

Banking on the commencement of its large GI and API pipes plant in Bhuj as well as expansion of its lighting systems unit in Gwalior, Surya Group expects its turnover to grow from Rs 2,000 crore pegged in the financial year 2009-10 to Rs 5,000 crore in next two years.

At its pipe manufacturing facility in Bhuj, the group's subsidiary company, Surya Global Steel Tubes Ltd. manufactures GI and API pipes from half inch diameter to 16 inch diameter.

Post expansion, Surya Group also expects a boost in its exports which stand at close to Rs 400 crore. "The group exports its products including lighting systems as well as pipes to around 40 countries, including Middle East, Canada and Germany," Agarwal added.

According to Agarwal, in the next two years, the group expects a turnover of Rs 1,500 crore from its pipe manufacturing facility in Gujarat.