The Telegraph
Saturday , May 24 , 2014
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Linde bid to cut costs

Moloy Banerjee in Calcutta on Friday. Picture by Arnab Mondal

Calcutta, May 23: Industrial gas manufacturer Linde India (formerly BOC India) is weighing its options on idle and non-profitable assets.

The company plans to sell around 11 acres at Tarapur, Maharashtra, and is looking for potential buyers. It has sold around 16 acres in Ahmedabad, where it had a cylinder filling plant that was closed early this year.

“The idea is to look at assets which are non-productive and inefficient and slowly start replacing them. There are a few more we are looking at. We are setting up a facility at Dahej to cater to the Gujarat market. We have built another plant in Taloja (Maharashtra).

“With those two plants, Tarapur has become redundant. It is more than 20-years-old. In Jamshedpur, we have five air separation units some of which are non-operative. We are still keeping them as a back-up,” said Moloy Banerjee, managing director of Linde India.

Linde India chairman Sanjiv Lamba said the company planned to seek some compensation from Tata Steel at a scheduled meeting on Tuesday for costs incurred by it because of delays in the commissioning of the Kalinganager project.

Linde is setting up two air separation units at Tata Steel’s project site at Kalinganagar, Odisha.

Banerjee said such compensations would not be in the form of cash.

Linde is bullish about the petrochemical cluster being set up in Dahej.

“It’s part of our business focus to get into Dahej. We are trying to do another cluster for steel in Kalinganagar. We expect to start building the pipeline next year,” Banerjee said.