Road to El Mutun

Naveen Jindal, India8217;s iconic young business tycoon, known as much for business as polo has reason to rejoice with Jindal Steel and Power now bagging the contract for the development of Bolivia8217;s El Mutun iron ore mines. With the El Mutun deal signed and sealed, Naveen is probably celebrating by eyeing an opulent new property in the heart of Lutyen8217;s Delhi. The property is valued at over Rs 150 crore, making it one of the most expensive addresses in Delhi8217;s most elite residential belt. Rumours suggest that Jindal may bag this prize from right under the nose of an NRI tycoon who had almost won the deal, a few months ago. Reserves of 40 billion tonne make the El Mutun mine the largest iron ore mine in the world. Winning this bid means a major step up for Jindal Steel and Power in the international arena, and what makes it more significant is that Naveen, who submitted the final bid for the El Mutun mines in late April 2006, had chosen to go solo despite stiff competition from companies from China, Argentina and Indian super-tycoon Lakshmi Mittal promoted Mittal Steel. While Naveen8217;s Bolivian foray involves a total investment of 2.3 billion, making it one of the biggest overseas investment by an Indian company, the El Mutun trade agreement might not come without headaches for the young tycoon, given the fact that it contains a clause that stipulates the demands of the domestic market need to be attended to before the ore can be exported. Naveen appears to have impressed the Bolivian government with his steel plant venture and so; it may not be Naveen8217;s last venture in Bolivia.

Towel Fight

G R Goenka Chairman Welspun India was busy spinning a hefty takeover last week. Today the mogul sits solid with an 85 per cent stake in the company that holds the reigns to Britain8217;s leading towel brand Christy. Insiders8217; report that about Rs 60 crore for the transaction will be funded by the Bank of Punjab, while the rest will be paid through Welspun8217;s internal assets. Barely three decades old, Welspun has seen phenomenal growth to become the biggest terry towel manufacturer in Asia and the fourth globally. Christy will help it realize its aspirations for inorganic growth to even higher heights. This latest undertaking is the key to venture into the British and other European markets where Christy is already synonymous with top end towels. Christy incidentally happens to be the sole supplier of tennis towels at the Wimbledon and supplies to high-end stores like Marks 038; Spencer, John Lewis, House of Fraser, Selfridges, Debenhams. More significantly it operates 22 self owned Christy stores across the United Kingdom. The tycoon has strategically ensured that Christy8217;s management though left with only 15 per cent share, will continue to run it. The Markets believe that Goenka will use the Christy Chain to push a whole range of products into the UK and then set forth to conquer Europe with his brands.