The Hindu Business Line : Visa Steel upbeat on Rs 5,000-cr turnover in five years

“Visa Steel’s turnover (Rs 1,000 crore in 2008-09) will jump five times as much in five years,” Mr Agarwal exuded optimism while talking to Business Line here recently, explaining that the Kalinganagar plant in Orissa would start producing special steels from 2010 end, and the work on the first phase 1.25 mtpa capacity steel plant in Chhattisgarh would start from October. “At Kalinganagar, the work on the 5,00,000-tpa capacity special steel plant is in progress and once it is completed next year, we’ll gradually withdraw from the production of pig iron and sponge iron in our present plant in the same area though we will continue to produce coke and ferro chrome there,” he said.

The present coke oven and ferro chrome capacity at Kalinganagar is estimated at 400,000 tonnes and 50,000 tonnes, respectively, annually.

“We’ve already spent Rs 1,200 crore at Kalinganagar and a further investment of Rs 800 crore is expected,” he said.

The Chhattisgarh plant to be located in Raigad district would focus on long products though the items to be produced were yet to be identified.

“Land acquisition is in progress,” he said, pointing out that a total of 1,000 acres would be needed for the proposed 2.5 mtpa plant to be set up in two phases of 1.25 mtpa each. “We’ve so far acquired about 200 acres,” he said.

Visa Steel was also looking at raw material security at least for 30 years for the Chhattisgarh plant and is in touch with the State Government for identifying suitable iron ore and coal reserves for signing mining lease agreements at the earliest, he said.

Mr Agarwal did not think that the plan to achieve Rs 5,000-crore turnover in five years was ambitious.

The Kalinganagar plant would have an annual turnover of Rs 3,000 crore and the Chhattisgarh plant Rs 2,000 crore, roughly, he said. “Five years ago, ours was a Rs 200-crore company. Besides, I’m bullish about the growth prospects of our economy,” he added.

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