To recruit 3,000; campaign against spurious pipes.

This expansion will help double the capacity of the company. The Bhuj unit will add a unit for steel pipes used for oil and gas transportation.

Our Bureau

Hyderabad, May 20 Surya Roshni is poised to complete its Rs 600-crore expansion plan by the end of this fiscal, covering both the steel pipes division and lighting, thereby helping in boosting its revenues significantly this year.

The company, with revenues of about Rs 1,800 crore this fiscal, expects to recruit about 3,000 people for its three new steel pipe plants and one new unit for high mast lighting used in highways, airports and other places. The company employs 6,000 people now.

The Director of Operations, Mr Arvind Bansal, said the company expansion project covers a Rs 400-crore unit at Bhuj in Gujarat for spiral pipes, a Rs 100-crore unit in Gwalior in Madhya Pradesh, a Rs 50-crore new plant at Bahadurgarh in Haryana and a Rs 50-crore high-mast lighting unit at Gwalior in Madhya Pradesh.

This expansion will help double the capacity of the company. The Bhuj unit will add a unit for steel pipes used for oil and gas transportation.

Speaking to Business Line, Mr Bansal said the ongoing capacity addition augured well for the company as the industry has been facing a shortage of pipes. According to estimates, the demand for steel pipes is poised for growth over the next eight quarters from real estate and Government.

While the Bhuj unit will be ready by December, other units are likely to be completed by March 2010. The company expects to close FY 2010 with revenues of Rs 2,700 crore, of this Rs 700 crore is expected from the lighting division, he explained.

Drive Against Spurious Pipes

Surya Roshni, which accounts for about 10 per cent of the country’s steel pipe market share, has initiated a campaign against use of spurious pipes, which account for about 30 per cent of total sales in the country.

Addressing a press conference, Mr Bansal said the South is a big market for the company. Therefore, it was felt appropriate to initiate a campaign against spurious pipes.

Spurious pipes are cheaper by 10 to 15 per cent and their manufactures offer heavy margins.

Mr Bansal said they have begun this initiative to educate buyers, and expect other players in the organised sector to join in. They are also in discussion with the Federation of Indian Industries to take this up as a national campaign.

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(This article was published in the Business Line print edition dated May 21, 2009)
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