The Hindu Business Line : Tayo Rolls’ unit to go on stream by 2008-09 end

Kolkata, March 19 Tayo Rolls Ltd’s forged rolls manufacturing facility, being set up at Jamshedpur at an estimated investment of Rs 142.5 crore, is expected to go on stream by the end of 2008-09. The company will be manufacturing forged rolls, forging quality ingots and engineering forgings from the new facility, according to Mr Pradeep Srivastava, Managing Director.

Mr Srivastava told Business Line that the company has been engaged in importing hardened forged rolls and machining them for cold rolling mills. The increasing demand for forged rolls had provided the company with the right opportunity and market to set up its own manufacturing facility. The excess capacity of the forging press, after manufacturing forged rolls, would be ideally utilised to manufacture engineering forgings for the oil, gas, wind mill and engineering sectors, he said.

For the project, Tayo Rolls has forged a technology tie-up with Sheffield Forgemasters International Ltd of the UK for technology transfer for manufacture of forging quality ingots, including round ingots, forged bars, engineering forgings and forged rolls. Following Tata Steel’s acquisition of Corus, Tayo would have greater scope to meet the growing demand for rolls within the Tata Steel Group, Mr Srivastava said.

According to Mr Srivastava, funds required for the project would be generated from internal accruals, debt and a rights issue “not exceeding Rs 46 crore”.

Tata Steel and Tata Group companies hold 39 per cent of the equity stake in Tayo Rolls while Yodogawa holds 10 per cent. Sojitz Corporation has two per cent of the equity stake in Tayo Rolls while the balance is held by the public.

The company, which clocked a turnover of Rs 222 crore in 2006-07, sells its products to steel manufacturers in India and abroad. Thirty per cent of the company’s production is exported to markets in the US, Europe, West Asia, South East Asia and China, among other geographies.

“We are growing at 25-30 per cent year-on-year and hope to notch a turnover of Rs 500 crore by 2010-11,” Mr Srivastava said.

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