The Hindu Business Line : Tata Metaliks’ iron pipe project may start production by 2009

Production from Tata Metaliks’ ductile iron pipe project being set up at Kharagpur in joint venture with Kubota and Metal One of Japan is expected to commence by early 2009. The 1,10,000 tonnes per annum facility is being set up at an estimated investment of Rs 150 crore.

While Tata Metaliks will hold 51 per cent of the equity stake in the joint venture, the overseas partners will hold the balance. The joint venture will be called Tata Metaliks Kubota Ductile Iron Pipes.

Stating this at the conclusion of Tata Metaliks’ 17th Annual General Meeting here on Friday, the Chairman, Dr T. Mukherjee, said the DI pipes manufactured by the company would be marketed in India under the ‘Tata Kubota Pipes’ brand even as pipes sold in the export markets would be under the ‘Kubota Pipes’ brand.

Dr Mukherjee said the demand for DI pipes was projected to grow at a compounded average rate of 18 per cent annually and hence, as part of a forward integration strategy, Tata Metaliks had embarked upon the project.

In 2006-07, Tata Metaliks recorded a production of 4,19,138 tonnes of pig iron, a 31 per cent increase over the production achieved in the previous fiscal. During the fiscal 2006-07, the company’s gross income from sales and other operations stood at Rs 781.75 crore, up from Rs 504.16 crore in 2005-06.

The PBT and PAT during 2006-07 stood at Rs 42.17 crore and Rs 29.51 crore, respectively, against Rs 68.79 crore and Rs 45.91 crore in 2005-06.

A dividend of Rs 6 (60 per cent) each per share of Rs 10 was declared for the year under review.