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Hyderabad, April 19 Kitti Steels Ltd, a Hyderabad-based company manufacturing equipment for core sector industries such as cement, steel and power plants, is looking at investing around Rs 45 crore to double its existing manufacturing capacity.

The company is also looking at an investment of around Rs 2,000 crore to foray into real estate, hospitality sector and set up a greenfield steel plant.

“Currently, we have a capability to manufacture 10,000 tonnes of equipment per year and looking at growth in the core sectors we plan to double the capacity. The expansion would be completed by May next year and the required investment will be raised from banks and suppliers credit,” Mr Harjinder Singh Sethi, Chairman and Managing Director, Kitti Steels, said while addressing a press conference.

Kitti Steels also announced that it has created the country’s largest single piece cement mill weighing 160 tonne for a German company Humboldt Wedag. “The cement mill is for French company Lafarge India, which will integrate the mill in the cement factory in West Bengal,” Mr Sethi said.

It is also in the process of exporting similar mills to MetsoMineral USA and Australia.

Mr Sethi said the company was firming up plans to diversify into the real estate sector by developing premium independent bungalows, elite flats and high-end townships.

“As a backward integration, we are also looking at setting up a 0.5-million tonne per annum steel plant in Visakhapatnam and foray into the hospitality sector by setting up luxury boutique hotels and a chain of restaurants,” he added.

The company proposes to raise the required investment by bringing in foreign investment and is looking at diluting between 10 per cent and 12 per cent stake.

The company, referred to the Board for Industrial and Financial Reconstruction a couple of years ago, expects to be a zero debt company by 2010.

“We have settled a one-time settlement (OTS) scheme with ICICI Bank and Bank of India and the total pay out is Rs 20 crore. The money for the OTS will be raised from local and foreign investors with whom we have signed MoUs,” Mr Sethi said.

He added that they expect to get the shares of the company listed again on the BSE in the next 8-10 months.

More Stories on : Outlook | Steel | Cement

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