EREDENE CAPITAL PLC

LOGISTICS PARK TO SERVE KALINGANAGAR INDUSTRIAL COMPLEX IN ORISSA STATE’S FAST-GROWING STEEL HUB

Construction is underway at Eredene's second joint venture with Apeejay Surrendra Group, a 30-acre Logistic Park to serve the Kalinganagar industrial complex, a fast growing steel hub in Orissa State's Jajpur district.

It is being developed by Apeejay Infra-Logistics Pvt Ltd, the joint venture company with which the Eredene Group is also developing an integrated Logistics Park in Haldia, West Bengal. It is anticipated that synergies and business efficiencies will be obtained by operating both Logistics Parks through the same company. Five to seven acres of open storage facilities are expected to be ready for use from March 2010 and a 112,000 square feet warehouse is scheduled for completion by the end of 2010.

Apeejay Infra-Logistics has signed a joint marketing memorandum of understanding with GatewayRail Freight Ltd (a subsidiary of the Bombay Stock Exchange quoted Gateway Distriparks Ltd) for transporting road and rail cargo to and from the facility. Marketing has started and the Logistics Park is scheduled to be ready for open storage business in 2010.

As with the Haldia JV, the Eredene Group has taken an equal 50% stake with Apeejay Surrendra Group, and both partners have agreed to invest up to INR 210m (£2.6m).

The Logistics Park will be the first fully purpose-built transport and warehouse facility to service the Kalinganagar region and it will specifically target the in-bound and out-bound cargo centred around the steel industry.

The location is well connected by road and rail –129 km from the major port at Paradip and 86 km from the newly built Dhamra Port which is due to open by 2010. A new railway line linking Daitari and Banshapani will enable access to the rail network via a proposed siding.