The Hindu Business Line : Midhani to invest Rs 100 cr more for expansion

Hyderabad, June 1 Midhani, the country’s leading special materials producer for the strategic sectors, has firmed up plans to invest a further Rs 100 crore to expand its facilities and to meet growing supply orders.

With an order book of over Rs 750 crore, the Hyderabad-based company is upbeat about the opportunities from the strategic sectors — space, defence and nuclear.

It has decided to establish a new Electro Slag Refining facility and a forge press with a combined investment of nearly Rs 100 crore.

This would be in addition to the Rs 160 crore expansion plan, which is under way to augment the company’s existing facilities, its Chairman and Managing Director (CMD), Mr M. Narayana Rao, told Business Line in an interview. The public sector undertaking under the Ministry of Defence also wants to set up a new rolling mill, which costs about Rs 60 crore, to boost its infrastructure and execute orders faster, he said.

The company will use its profits to fund its expansion. “We are also inclined to seek support from the Ministry as well as financial institutes, if necessary”, Mr Rao said.

The Department of Space, Atomic Energy and other customers have also supported in funding, he explained. Dastur & Co consultants had projected in their report submitted in 2004-05 that the company would touch Rs 279 crore in fiscal 2009-10 and Rs 308 crore in 2010-2011.

The company has managed to achieve the milestone turnovers a year ahead, he said. Midhani’s orders comprise of defence supplies (48 per cent), space (29 per cent), power (10 per cent), commercial (7 per cent) and nuclear (6 per cent).

The large projects taken up by the Defence Ministry, launch and development initiatives (including Chandrayan) and the nuclear power expansion programme of the Department of Atomic Energy, have fuelled big orders up to 2012 already, Mr Rao said.

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