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Our Bureau

Mumbai , July 18

Adhunik Metaliks Ltd, the flagship company of Kolkata-based Rs 1,200 crore Adhunik Group, on Tuesday, announced that it has been allotted an iron ore mine at Kulum in Keonjhar district of Orissa. The iron ore will help the auto grade steel manufacturing company to reduce its raw material costs from Rs 1,800 per tonne to Rs 800 per tonne.

"We produce 2.5 lakh tonne of steel a year in our unit at Rourkela. We have embarked on a capacity expansion programme at our Rourkela unit at an investment of Rs 437 crore," said Mr Manoj Agarwal, Director, Adhunik Metaliks Ltd. The ore is said have an estimated reserve to provide for the entire production capacity for next 30 years.

Good prospects

With an intention to foray into power transmission and distribution sector, Adhunik Metaliks recently acquired Unistar Galvanisers and Fabricators Ltd (UGFL) for an undisclosed consideration. UGFL is engaged in manufacturing of sub-station structures and transmission towers for power and telecommunication sector. The company has begun receiving overseas orders from countries like Bhutan, Algiers and West Asian Emirates, Mr Agarwal said.

The company has also hammered out a Rs 70-crore expansion programme to increase the capacity of UGFL to the range of 7,000 tonne - 8,000 tonne of fabrication per month. The expansion will also increase galvanising from 4,000 tonne to 6,000 tonne per month.

For the fiscal year ended March 2006, the company had a total income of Rs 426.55 crore and a net profit of Rs 33.71 crore. It has also declared a maiden 5 per cent dividend for the year 2005-06, said Mr Alok Kumar Shrada, CFO, Adhunik Metaliks Ltd. Shares of Adhunik ended at Rs 31.85, up by Rs 1.15 on BSE.

More Stories on : New Projects | Mining & Quarrying | Steel | Minerals

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