Business

McNally Bharat to step up supplies to Europe

KOLKATA: B M Khaitan group company McMally Bharat Engineering (MBE) is planning to position itself as a global sourcing hub for European metal majors. This follows a breakthrough achieved by the company in the export market for engineering products.

A company release said that MBE has recently been approved as a supply partner by France based Solios Corporation, a leader in aluminium engineering, and similar tie-ups are expected to be finalised shortly with some other European metal companies. MBE, which is in the business of equipment supply and turnkey contractor, is now modernising its unit at Kumardhubi near Asansol in West Bengal and has already acquired 25 acres for a new fabrication plant at a closeby location. This unit would be used for manufacturing special fabrication in steel and power sectors. The companyhas units in Karnataka and Jharkhand.

MBE, which acquired 68.28 per cent of Sayaji Iron and Engineering Company, a few weeks ago as part of its plans to boost its equipment business, is on the lookout for further acquisitions, the release said. On projects business, the release said that bids totalling Rs. 4,360 crore are at different stages of negotiation. It has bagged sizable orders in the modernisation and capacity augmentation programmes of Rashtriya Ispat Nigam and Iron and Steel Plant (formerly known as IISCO).

However, the increase in prices of steel since February and the escalation in cost of cement may impact the margin of some of the unexecuted portions in the contracts, which are covered by the escalation clause.

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