Saturday, September 18, 2010

Cethar Vessels Plans To Raise Rs 400 Cr PE

Power Equipment Manufacturer Cethar Vessels (Chairman Mr.K.Subburaj) is looking to raise Rs.400 crore though private equity route.

The funds will be used for the power production by setting up a thermal-based power plant and a solar farm in Tamil Nadu.

Incorporated in 1981, Chennai-based Cethar Vessels Ltd. (Cethar Vessels) is an independent boilers manufacturing company. It is engaged in the designing, developing and manufacturing of a variety of boilers and other electrical equipments. In addition, it also offers services like engineering, re-engineering, retrofitting, supplying, installation and after sales services of small and large-scale boilers, water treatment systems, fuel handling systems, electrical systems and other services.

It will invest around Rs 5,000 crore for setting up the thermal plant of 1,010 MW capacity and a solar farm of 12 Mw in Pudukottai district at a cost of Rs.180 crore.

It is also planning a facility to manufacture turbines for thermal power plants in Tiruchy with an outlay of Rs 1,200 crore. The proposed plant will be set up over the next three years in phases with a total capacity of 4000 Mw.

This year in March, Cethar had signed a MoU with Russia's OJSC Power Machines to manufacture turbines for thermal power plants in India in which OJSC will own the majority stake in the JV.

It would invest another Rs.200 crore to expand the production capacity for boilers, to 12,000 Mw from the current 8,000 Mw which is expected to be completed by end of 2011.

Currently, the company has an orderbook of Rs 5,500 crore.

Cethar Vessels recently secured ‘supercritical technology' (boilers that operate at higher temperatures and pressures and hence more efficient) from Siemens through
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