The JV named Xindia Steels Limited, is promoted by Xinxing Group of Companies, China National Metals Products, part of China Minmetals Corporation along with its Indian partners Manasara Investments, Kelachandra Group and Sigma Minmet Limited to set up a pellet and steel plant in village Ginigera, Koppal District, Karnataka. 

Xindia Steels Limited which will be the vehicle for Xinxing and Minmetals' growth in India, is setting up a 2 million tone iron ore pellet plant in the first phase. In the second phase it will expand pellet capacity to 6 million tonnes and also set up a steel making facility of 2.5 million tonnes. Investment in the first phase will be Rs 400 crore and at the end of second phase it is likely to go up to Rs 8735 crore, announced the company here. If the market dynamics are suitable, Xindia may even expand steel making capacity to 6 million tonnes and also set up a 250,000 tonnes of steel pipe making facility through the JV route.  The share holding pattern is as follows:

Xinxing Group of companies will hold 35 per cent, China National Metals 20 per cent, and three Indian partners Manasara Investments, Kelachandra Group and Sigma Minmet Limited will together hold the balance 45 per cent.

Briefing reporters here, Xindia Steel Limited Director Gopi Ramanathan said “the first goal is to set up facilities in three areas of business in three distinctive phases. The first phase is to meet the needs steel and sponge iron plants. The second phase investments will bring in Xinxing cutting edge steel technologies.” The JV is expected to be a major booster for state’s mining industry because instead of exporting rich iron ore, Xindia will export finished products with significantly higher value addition. The plant will be equipped with rain water harvesting, sewage water treatment and landscaping with trees planted across the facility.

“Our principal investors Xinxing is one of lowest cost manufacturers for steel making and Sinter Plant and Rolling Mills and China Minmetals is the world’s largest company for steel raw materials and finished metals.  This will give Xindia a definite advantage in the industry” said Mr Ramanathan.

The Xinxing Group of companies is a $11 billion conglomerate and listed on Shanghai exchange. It has multi-locational factories manufacturing Ductile Iron Pipes, Steel Plant and Equipments, Steel, Petrochemical Industry.