Vedanta Group’s Gen Z floats JV to make mining products
Runaya, a metals start-up founded by the sons of Vedanta ViceChairman Navin Agarwal, has signed a joint venture (JV) pact with Minova, a wholly-owned division of Australia-based Orica, to manufacture niche products for the mining sector.
The start-up, founded by Naivedya Agarwal and Annanya Agarwal, and its Australian partner have floated a JV called Minova Runaya (MRPL), in which Runaya will hold 49 per cent.
Orica is a global leader in mining support systems and explosives with revenue of Australian $6 billion (~32,000 crore).
Speaking to Business Standard, Naivedya Agarwal, chairman, MRPL, said the JV had earmarked around ~250 crore to set up a manufacturing facility at Bhilwara, Rajasthan. Production is expected to start in December or January and the project will give jobs to around 2,000 people, directly and indirectly.
During phase-i, the JV will invest around ~100 crore, which would generate around ~450 crore in the next two years, said Agarwal. He expects around 50 per cent of the revenue would come from the export market. And nearly 50 per cent of the production will be for export markets.
The facility will manufacture products including rock bolts, resin capsules, injection chemicals, wire mesh, and high-quality ventilation systems for both domestic and export markets.
Agarwal said Runaya would be the first company to manufacture these products for Indian miners, which import them now. It’s an example of Atmanirbhar Bharat, he added.
He estimates the global market for these products at around $3 billion and domestic demand at ~500-600 crore. Of this, around ~250-300 crore would be from Hindustan Zinc, a Vedanta Group company. The other potential customers are Coal India, the Ministry of Highways, and Larsen & Toubro, among others.
Agarwal said the JV would explore manufacturing other products in Minova’s portfolio in India.
Minova provides ground support systems for the mining, construction, and energy industries. Operating in over 40 countries with 15 manufacturing plants, it offers innovative ground support products and solutions, including steel rock bolts, self-drilling anchors, resin capsules, injection chemicals, bulk and capsule grouts, cementitious powders, bolting and ventilation systems.
At its end, Runaya is working with other foreign partners for aluminium recovery from aluminium dross, minor metal recovery in the zinc value chain, extracting and refining 100 per cent cadmium (and other minor metals) from zinc waste and fibre reinforced plastic, of which it makes 1 million km.
Agarwal said the company was still looking for partners related to producing high-technology aluminium paste and powder in India and sustainable waste management solutions for the aluminium industry.
In 2017, the company had signed two JVS worth $75 million with Russia’s UC Rusal and Bahrain’s Taha International Corporation (TIC). But the project did not take off due to sanctions against Russia and Rusal’s name being on the list. While the JV with Rusal has been called off, the agreement with TIC stands.