The Hindu Business Line : Kerala SIDCO in marketing tie-up with SRMB Udyog

The Kerala Small Industries Development Corporation (SIDCO) has signed a memorandum of understanding with SRMB Udyog Ltd, leading manufacturer of TMT bars in the secondary market, for marketing the latter’s products in the State.

One of the activities of SIDCO is supplying raw materials and providing marketing support to small industrial units in the State and the tie-up will signal the diversification of the corporation’s area of operation.

The Industries Minister, Mr Elamaram Kareem, said on the occasion of the signing of the MoU here on Monday that SIDCO had been in loss until a couple of years ago and it had now become one of the profit-making undertakings under the Industries Department.

Mr M.M. Abraham, Senior Vice-President (Marketing and Distribution), SRMB Udyog, said the marketing agreement would cover an initial period of five years and the marketing of SRMB products would be done through 140 outlets of SIDCO across the State.

The company hoped to achieve a turnover of around Rs 150 crore over the next 12 months, which would result in a revenue of Rs 60 lakh for the State Government.

He said that SRMB’s recent venture was the opening of the second unit at Durgapur in West Bengal with a production capacity of 1.5 lakh tonnes a year. The company is now planning to invest around Rs 100 crore for the establishment of an electric arc furnace plant there.

The company recorded a turnover of Rs 450 crore last year and the projected turnover for the current year is Rs 1,100 crore. The company also proposes setting up of an integrated steel plant at Purulia in West Bengal in the near future, Mr Abraham said.

The former Indian cricket captain, Mr Kapil Dev, who is the brand ambassador of SRMB Udyog, attended the MoU signing function.

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