Hyderabad, Aug. 22
The Hyderabad-based steel tube and pipe manufacturing company Mahalakshmi Profiles Pvt Ltd (MPL) has earmarked Rs 6 crore for its expansion plans during the financial year 2007-08.
The capital would be raised from banks and by the promoters within. The company, which achieved a turnover of Rs 75 crore during fiscal 2005-06, has targeted to achieve Rs 200 crore turnover by 2007-08, according to a press release.
To achieve this target MPL has firmed up an expansion plan, which includes setting up cold rolling mill, doubling the production capacity of the H.R. strip mill from 31,000 million tonnes (mt) per annum to 72,000 mt; upgrade the present strip mill to produce longer strips in coils and increase the product capacity of the pipe mill from 20,000 mt per annum to 40,000 mt.
MPL has also identified a new segment of cold rolled strips and pipes as further value added products, the demand for which was increasing from the automobile sector and to encourage its consumption the Union Finance Minister had reduced the excise duty from 24 per cent to 16 per cent, the release said.
Mahavir Steel Rolling Mill, the first steel rolling mill in the State, is a group company of MPL. The group has presence in all stages of steel manufacturing. One of MPL's group concern Sri Shiv Shakti Steeland Alloys is an integrated steel plant using iron ore as raw material for manufacturing of sponge iron.
MPL is a closely held company, with clients/users across major construction companies, mines, industrial sheds, tube mills & rolling shutters and so on. Its major markets are Andhra Pradesh, Tamil Nadu, Karnataka, Kerala and parts of Maharashtra, the release added.