Monnet Ispat & Energy announces 20% growth in total sales for Q1FY11

•   Recently Blackstone Group has invested Rs 2750 million for 12.5% equity stake in Monnet Power Company Limited (“MPCL”), an independent power producer (“IPP”) a subsidiary of MIEL wherein, MPCL is developing a 1,050 MW coal fired power plant in Orissa backed by pit-head captive coal mines.

•    MIEL formed JV with country’s largest iron ore mining company National Mineral Development Corporation (NMDC) in ratio 49:51 to acquire and develop coal blocks in India. The newly formed company will bid for coal mines with reserves of 200 to 300 million tonne.

•    The Indian Boxing Federation has signed a three-year USD one million deal with Monnet Ispat and Energy Limited to sponsor the national teams and take care of their kits.

Management view on performance

Commenting on the performance of the group in the first quarter of current fiscal, Mr. Sandeep Jajodia, Executive Vice Chairman and Managing Director, MIEL, said, “The last quarter has been very tough for the steel industry at large; the prices have been under pressure which has impacted the margins of the industry. The raw material prices didn’t fall and match with the prices of end product.”

“It however, gives me immense pleasure to reiterate that our sharp focus on a sustainable operational efficiency has continued to deliver robust results for the company on account of efficient cost management, better production and better pricing & procurement of raw materials. I am confident that operational efficiencies along with good understanding of the market in which we operate in, will help Monnet in sustaining its growth trajectory.” Mr. Jajodia added.

Monnet Power Company Limited: MPCL is an IPP that is in the process of developing power generation capacity of 1050 MW. The Company is finalizing the plans to augment its power generation capacity to 3000 MW.

Monnet Ispat & Energy Limited: MIEL is promoted by Mr. Sandeep Jajodia. Its principal activities include manufacturing and marketing of Sponge Iron, Steel and Ferro Alloys. In addition, MIEL is engaged in mining of mineral assets like coal & iron ore and is also involved in the generation of power for captive consumption. The Monnet Group has manufacturing facilities in Raipur and Raigarh in Chhattisgarh and is currently in the midst of implementing a 1.5 Million Tons integrated steel plant to produce plates, structurals and rebars at its facility at Raigarh in Chhattisgarh to cater to the high growth infrastructure sector. MIEL through its subsidiary is now making measure of forays in the development of Merchant Power Plants and is currently implementing the first 1050 MW power plant at Angul.

Further information is available at http://www.monnetgroup.com

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Key Contacts:

Ms. Neetal Naarang

Head – Corporate Communication

Monnet Group,  011 – 29229652, 53