The Hindu Business Line : Midhani to expand capacity

Hyderabad June 15 Mishra Dhatu Nigam Ltd (Midhani) is increasing its melting capacity from the current five tonnes to 15 tonnes in the next 12 months and taking a host of measures including implementation of ERP to increase efficiency and cut costs.

The Ordinance Factory Board (OFB) is providing financial aid to add another furnace at a cost of over Rs 20 crore to increase the melting capacity to 15 tonnes, Mr M. Narayana Rao, Chairman and Managing Director, told newspersons at the inaugural session of a customer meet on Friday.

"In the last four years, we doubled sales to Rs 192 crore. Our current order book stands at Rs 600 crore. We target to double our turnover within two years."

All measures are being taken to prevent delays in delivery and make the pricing more competitive by cutting down costs.

"The raw material costs in the international market have gone up by over 600 per cent in the last four years. To remain competitive, we are implementing ERP this year," Mr Rao said.

SALES VOLUME

Earlier, speaking at the inaugural session, Mr Rao said that the company was aiming at improving sales to non-Government entities such as L&T.

"Currently, 20 per cent of our revenue comes from commercial sales and we intend to increase it further."

Midhani is in the process of signing MoUs with many customers to know about their future requirements in advance, he added.

Mr Sudipta Ghosh, Chairman of OFB, who participated as chief guest, said that the customers of Midhani should play a constructive role in improving the order book of the company.

Over 100 delegates from different Government agencies and industry participated in the meet.

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