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HEG says Rs 750 crore buyback is on track, should complete by March

Updated : January 25, 2019 01:22 PM IST

Graphite electrode maker, HEG Ltd, on Friday said share buyback offer worth Rs 750 crore is on track and will be completed by March 2019.

Last year, the board of directors of HEG approved a proposal to buy back up to 13,63,636 shares of the company, being 3.41 percent of the total paid up capital of company for an aggregate amount not exceeding ₹ 750 crore.

In an interview to CNBC-TV18, Ravi Jhunjhunwala, chairman and managing director, said, "No policy has changed as far as China is concerned and it makes very little difference to the rest of the six-seven global players in the graphite business. Two Indian companies produce about 20-25 percent of low end electrodes, which is called the non-ultrahigh power (UHP) as China only produces and consumes non-UHP electrodes."

Jhunjhunwala said, "HEG doesn't sell anything to China market so there is no impact to our exports and India doesn’t import anything in the UHP sector from China. China's environment policy remains as strict as it used to be a year ago."

“The only thing that has changed in China in the last 18 months is that it doubled electric arc furnace production from about 50 million tonne to about 100 million tonne. China's electrode demand has subsequently doubled from 50 to 100 million tonne. In anticipation of that, Chinese companies are building new graphite plants and expanding their existing plants. The entire metal space including aluminium, copper and steel are slowing down and the world is slowing down, which is nothing specific to us. So obviously, there is some sort of uncertainty about the future,” he added.
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