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Setback to AV Birla expansion plans

Our Bureau

MUMBAI, Feb. 21

THE A.V. Birla group was a strong contender for Balco. Thus, with the Government deciding in favour of Sterlite, Mr Kumar Mangalam Birla's hopes of becoming the biggest player in the aluminium market have received a setback.

With today's deal, there will be three major players in the aluminium sector -- Hindalco, Nalco, and Sterlite. Sterlite is also a major player in the optical fibre cables business.

According to Mr Navin Agarwal, Director, Sterlite, with this acquisition, the company's turnover from the aluminium business would go up to Rs 1,600-1,700 crore.

Sterlite had recorded a net profit of Rs 242 crore on a sales turnover of Rs 2,925 crore for the year ended June 30, 2000.

PowerGrid Corporation is one of the major customers of Sterlite's aluminium products. The Power Transmission Line Aluminium Conductors division of the company has been performing well. The acquisition of Balco is likely to give a boost to this division.