The Hindu Business Line : Mukand plans hiking production capacity

Capacity addition: (From left): Mr Niraj Bajaj, Managing Director, Mukand Ltd, Mr Rajesh V. Shah, Vice-Chairman and Managing Director, and Mr Rahul Bajaj, Chairman, at the company’s 69th AGM in Mumbai on Saturday. —

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Mumbai, July 14 Mukand Ltd plans to increase the production capacity of its speciality steel and industrial machinery divisions by 80 per cent to 5.4 lakh tonnes by April 2008.

The capex programme of Rs 300 crore for raising the production is in progress and on schedule. This additional capacity is expected to mainly serve the growing demand from global brands such as SKF, Bosch, Sandvik, Toyota and Bekaert.

The capex, mainly funded through internal accruals, will also include a 44-acre Greenfield project at Lonand near Satara, for installation of additional downstream facilities.

Jt venture steel unit

Mr Niraj Bajaj, who took over as Chairman today, told the AGM that the company had firmed up a proposal for setting up a steel wire manufacturing facility in association with a global leader in carbon/alloy/ stainless steel wires.

The joint venture will focus on spring wires, welding wires, weaving wires and annealed wires.

Net up at Rs 13.2 cr

Net profit for the quarter ended June 30, 2007 was Rs 13.21 crore against Rs 12.68 crore logged in the same period last year.

For the quarter, the turnover of the industrial machinery division rose 17 per cent to Rs 57.25 crore. For a 40 per cent enhancement in capacity by March 2008, the division has obtained a 42-acre site from MIDC at Sinnar near Nashik.

The company’s decision to focus on exports resulted in a y-o-y increase of 47 per cent in export revenue to Rs 38 crore in the first quarter of financial year 2007-08 as against Rs 26 crore in the same period of FY 07.

Export target

The export target for 2007-08 is Rs 205 crore against Rs 137 crore in 2006-07.

“We are looking at Rs 1,000-crore direct exports in 2009-10,” said Mr Rajesh V. Shah, who has taken over as Co-Chairman of the company today.

The turnover for the quarter including excise and other receipts was higher at Rs 498 crore, compared wih Rs 480 crore in the corresponding period of the previous year.

A company release said Mr Rahul Bajaj had stepped down as Chairman of Mukand and that he would continue as Director.