Diversification Play

Nava Bharat Ventures was started in 1972 under the name of Nava Bharat Ferro Alloys (NBFA). In 1975, it started manufacturing ferro silicon at Paloncha in Andhra Pradesh. In 1980, the company ventured into the production of sugar and related by-products. In 1997, it entered into power generation with the objective of becoming self-sufficient in this regard. Given the mismatch between the demand and supply of power, its decision to produce power for captive use soon changed into a decision to supply power to the grid. In 2005, the company forayed into the development of real estate and Special Economic Zones (SEZs). In July 2006, NBFA changed its name to Nava Bharat Ventures (NBV). Next, it set up a wholly-owned subsidiary in Singapore known as Nava Bharat (Singapore) Pte. Limited for its foray into international trade. Business Power. NBV currently has an installed capacity of 237 MW: 143 MW of this is located in Andhra Pradesh and 94 MW is in Orissa. In March 2010 the company announced that it would set up two plants of 150 MW each in Andhra Pradesh. Its Zambian power project of 300 MW is expected to achieve financial closure by the end of FY11. NBV informed the Bombay Stock Exchange (BSE) on July 14, 2010 that the company had sold 52 per cent of its shareholding to Essar Energy in the upcoming 1,050 MW power project in Orissa. This project was jointly owned by Nava Bharat and Malaxmi Group. It has also agreed to

This article was originally published on November 10, 2010.