Financial Daily from THE HINDU group of publications
Wednesday, Jun 01, 2005
Financial Daily from THE HINDU group of publications Wednesday, Jun 01, 2005 |
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Corporate
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Modernisation Salem Steel Plant to take up Rs 1,136-cr modernisation Kohinoor Mandal
Kolkata , May 31 STEEL Authority of India Ltd has worked out a Rs 1,136-crore modernisation plan for Salem Steel Plant as a part of the company's Corporate Plan 2011-12. According to Mr M. Roy, Executive Director of Salem Steel, the plan is divided into two parts. While the first part focuses on backward integration with a steel melting shop, the forward integration would happen with a cold-rolling mill and an analysing and pickling unit. "Initial study on this programme has been completed. Thereafter, we have reached at this valuation. However, we are yet to decide on whether to start with the forward integration project or the backward integration," Mr Roy told Business Line. Once the modernisation project is completed, Salem Steel Plant's annual capacity would increase from 1.80 lakh tonnes to 3.70 lakh tonnes. However, Mr Roy said the capacity of Salem Steel Plant depends on the availability of its main raw material, steel slabs of stainless grade. The plant used to buy it mostly from Jindal Stainless and Shah Alloys. "In the last financial year, the Jindals have reduced their sales of these slabs as their own capacity had already come up. Shah Alloys is still selling us. Last year, Bokaro Steel Plant has supplied us a good quantity of these slabs," he said. In the current financial year, Salem Steel is trying to broadbase its raw material source. The plant has already started importing steel slabs from Taiwan, South Africa and South America. It is also looking at a Chinese source. Salem Steel would also get steel slabs from Alloy Steel Plant, another speciality steel plant of SAIL, once its AOD (argon oxygen decarburisation) unit is commissioned. It is likely to be ready in 2006. In 2004-05, Salem Steel exported 67,000 tonnes of stainless steel. Its domestic sales were approximately 27,000 tonnes. The unit's turnover was in the range of Rs 1,000 crore. In the current financial year, the turnover is targeted at Rs 1,450-1,500 crore. The plant's net profit increased from Rs 1.94 crore in 2003-04 to Rs 3.48 crore in 2004-05.
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