“Will Invest Rs 100 Cr To Rs 200 Cr Every Year”
Pragun Jindal Khaitan, Managing Director, Jindal Aluminium, talks to C. H. Unnikrishnan about the company’s mega diversification plans
Photo Credit : Subhabrata Das,
Pragun Jindal Khaitan, Managing Director, Jindal Aluminium, talks to C. H. Unnikrishnan about the company’s mega diversification plans.
Why is diversification a compelling need for Jindal Aluminium?
There is no compelling need as such, because the existing business is still contributing almost 80 per cent of the revenue and it is growing at a higher rate than the industry average. But, of course, there are always challenges in the market. So, we feel that it’s time to unlock the value of its wealth and other resources that it has created over the last several years. Since we have now set a goal of doubling the turnover, these diversified businesses are also expected to contribute to that growth over the next five years.
Probably, the branded healthcare business, which will deal with branded Ayurvedic and herbal products would become a subsidiary company later.
How are you structuring the diversified businesses?
Jindal Aluminium will continue to be the operating company for all these businesses for the time being. We at Jindal Aluminium have been utilising our cash surplus in buying land parcels in the last many years. As far as the new real estate business is concerned, Jindal will remain an investor as the land will be its investment. It will partner with reputed developers and ideally, we will have different partners in each project.
What will be the investment in each of these businesses?
The company will invest in the range of Rs 100 crore to Rs 200 crore yearly in new businesses over the next few years. With these new businesses, along with key expansion in the aluminium downstream business, our expectation is that the group would be able to double the turnover over the next five years.
Top themes and market attention on: