Adani Enterprises on Thursday (25 March) announced its entry into the copper business by incorporating a wholly-owned subsidiary, Kutch Copper Limited (KCL).
“KCL is incorporated with the object to undertake copper business-related activities, such as the manufacture of copper cathodes and copper rods and more,” the company said in a filing with exchanges.
The company’s entry into the copper business comes at a time when the import of refined copper has increased to 92,990 tonnes in FY19, from 44,245 tonnes in FY18, reports The Economic Times.
The copper import from China, Japan, Malaysia, Vietnam and Thailand accounts for 45 per cent of India's USD five billion imports for 2019-20.
Copper is a significant raw material for many industries such as the packaging, electrical, transport and telecommunication industry. Other top players in the industry include Hindalco, Hindustan Copper and Vedanta Ltd.
The Sterlite Copper Plant at Thoothukudi belonging to Vedanta Resources was ordered shut by the Tamil Nadu government on 28 May 2018 following violence demanding its closure.
Nearly 100 days of protest demanding its closure resulted in violence on 22 May 2018 when the protesters took out a procession and indulged in violence damaging government buildings, properties and vehicles.
The closure of the plant has resulted in India becoming a net importer of copper, while also helping Pakistan increase its copper exports to Pakistan by 400 per cent.
The Sterlite plant offered direct employment to 4,000 people and indirect employment to 20,000. The closure of the unit since May 2018 has led to a ripple effect on the industrial city’s economy.
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