SPS Group Has Diversified Into Many Areas

Marriott Hotel in Kolkata

Marriott Hotel in Kolkata
Marriott Hotel in Kolkata | Source

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Kolkata city was once upon a time the capital of British India

A markerkolkata -
Kolkata, West Bengal, India
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Kolkata city was once upon a time the capital of British India

Diversified Group

Marriott Hotel in Kolkata

Kolkata city was once upon a time the capital of British India. Now in the year 2013, the first JW Marriott group hotel will come to the city. The hotel with 330 rooms and a service apartment set up in four lakh square feet will be coming up in eastern Kolkata. The amount involved in setting up the project is Rs.1000 crore. SPS group has stated that construction has already begun and the project will be completed as expected in 2013. What has SPS group got to the do with Marriott Hotel project? SPS group along with Satva of Bangalore and Mani Group of Kolkata are jointly involved in setting up the hotel project. But JW Marriott will manage the property.

Diversified Group

SPS group has many trading firms and a steel plant in Durgapur. SPS group is planning to invest a whopping Rs.5000 crore in various sectors like healthcare, hospitality, electrical, power and food. SPS group has a four-star property with seventy rooms in Kolkata which is managed by ITC under the Fortune brand. SPS group is setting up a nursing college and a hospital in Durgapur. SPS group is planning to set up a power plant in Mejia in Bankura district. It has started acquiring land for the purpose. The hospital was supposed to be ready by last month. I don’t know whether it is ready. SPS group plans to fund all these projects through a judicial mix of equity and debt. Athina Capital of Britain, the private equity player, is ready to invest in the group’s projects. Internal accrual will also come in handy.

Roping In a Former Cricketer

SPS group has appointed the former cricket Ravi Shastri in its board. Last year SPS group has floated a division to start international trading business and shipping. It was planning to acquire a tanker and two bulk carriers. Captain Ravi Dey has been appointed as the Managing Director of SPS Shipping. SPS group’s logistics arm will take care of warehousing, transportation and dry port functioning. It is not known why Ravi Shastri has been inducted into the group’s board. It would have been understandable had an existing cricketer like Dhoni been appointed as the brand ambassador of the group. Maybe, Ravi Shastri possesses business skills and acumen, which I am not aware.

Integrated Steel Plant

SPS group has manufacturing facilities in Himachal Pradesh and West Bengal. SPS Ispat & Power is in advanced stage of establishing an integrated steel and power plant in Mejia village with a capacity of 5 lakh tonnes per annum. 350 acres of land is required for the project. SPS group has already purchased 200 acres of land. The project involves an investment of Rs.2000 crore and will be completed in stages. The project includes a 110 MW captive power plant and a pellitisation plant with a capacity of 1.2 million tonnes per annum. The 1.7 million tonnes per annum iron ore beneficiation scheme is also on the cards. Bipin Kumar Vohra is the Chairman of the SPS group. SPS Steel & Power has an equity base of Rs.700 crore. 32% of the equity will be picked up by the private equity major Athina Capital of UK. Indian Overseas Bank has taken the lead role in debt syndication amounting to Rs.1350 crore. The financial closure was achieved last year.

Coking Coal Imports Will Be Taken Care Of

SPS group is reducing its production of sponge iron and instead manufacturing steel through pellitisation route. SPS Shipping Ltd will be a Singapore-based company. It will take care of the SPS group’s needs for coking coal imports.

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