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Ambar Singh Roy

Kolkata , Oct. 2

TATA Ryerson Ltd, a 50:50 joint venture between Tata Steel and Ryerson-Tull of the US, hopes to leverage on the growing market for rebars and grow at a pace faster than anticipated.

With rebar processing facilities being set up in Faridabad and elsewhere in the country in a phased manner, the company is hopeful of generating a revenue of around Rs 1,500 crore by 2007-08.

In 2004-05, Tata Ryerson recorded a revenue of Rs 585 crore, according to Mr Sandipan Chakravortty, Managing Director.

Speaking to Business Line, Mr Chakravortty said the company was augmenting its steel processing and distribution capacity in a phased manner to two million tonnes per annum by March 2008. This would necessitate an estimated investment of around Rs 200 crore, which would be generated by way of internal accruals and debt.

Besides augmenting capacities at its plants in Jamshedpur and Pune, Tata Ryerson was setting up a 50,000 tonnes per annum capacity fully automated rebar processing facility at Faridabad with a view to meeting the demands of the infrastructure segment of the National Capital Region. The Faridabad plant, in which Rs 30 crore would be invested, would also cater to the needs of automobile ancillaries in the northern region. The plant is slated to be inaugurated on October 18. In the first 12 months of operations, revenue from the Faridabad plant is expected to be around Rs 120 crore.

In the next fiscal, a processing facility would be set up in Bangalore at an estimated investment of Rs 20 crore. The plant would have among its primary customers South India-based automobile and auto ancillary companies. It would also produce thick plates that could find takers by companies such as L&T and Bharat Earth Movers Ltd, among others.

"We have been recording a compounded annual growth rate of around 50 per cent. And we are confident of maintaining the growth. We have firmed up a multi-pronged growth strategy. This includes increasing our existing business, entering new businesses, introducing new products and finding a presence in new locations," Mr Chakravortty said, adding that the company's technical and engineering services wing would become a standalone division within the next 12 months. "This would be part of our programme aimed at branding our services," he said.

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