Business Daily from THE HINDU group of publications
Sunday, Feb 10, 2008
ePaper | Mobile/PDA Version
Business Daily from THE HINDU group of publications Sunday, Feb 10, 2008 ePaper | Mobile/PDA Version |
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Corporate
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Outlook Sujana Metal Products plans Rs 1,600-cr capacity expansion Our Bureau Mumbai, Feb. 9 Secondary steelmaker Sujana Metal Products Ltd plans to invest about Rs 1,600 crore to raise its capacity to one million tonnes by 2010. The company recently acquired two units in Hyderabad and one at Chennai for about Rs 800 crore. It has also zeroed in on three more units — one at Visakhapatnam and two in Hyderabad. Funding plansTo fund its expansion plans, Sujana raised Rs 800 crore by issue of warrants worth Rs 217 crore to promoters, Rs 100 crore through internal accruals and balance by way of long-term debt. “We are yet to finalise the funding pattern for the second phase,” said Mr Y.S. Chowdary, Chairman, Sujana Group of Companies. The two plants at Hyderabad have annual capacities of one lakh tonnes (lt) and 60,000 tonnes, while the Chennai unit is of 60,000 tonne capacity. The company produces TMT bars and commercial steel of various sizes. Headquartered at Hyderabad, Sujana’s existing plants at Hyderabad and Chennai together have a combined capacity of 2.29 lt per annum. “Sujana Metal Products is reckoned as the major supplier to realty and infrastructure sectors,” said Mr V.S.R. Murthy, Group Director, Sujana Group. The growth plan hinges on higher percentage of value-added products (entire range of structural steel and ready-to-use steel), forward integration — ready to use steel and complete backward integration up to the stage of iron ore mining, he said. Iron oreThe company has made long-term arrangements for supply of iron ore from Bellary. “We would be investing about Rs 150 crore over a period of three years there,” Mr Chowdary said. With the acquisitions and expansion plans the company expects its sales to go up to Rs 3,000 crore in three years. For the December quarter, the company’s sales were Rs 344 crore. More Stories on : Outlook | Steel
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