Pune, Dec. 14
ISMT Ltd, the entity established after the proposed merger of Indian Seamless Metal Tubes Ltd (ISMT) and Indian Seamless Steel and Alloys Ltd (ISSAL), will focus on the export market.
Talking to presspersons here, Mr Rakesh Duda, Regional Director, ISMT, said his company is currently exporting products to the US, Europe and other Asian countries.
The company is planning to open an office in Europe to cater to the European markets. He, however, said the decision about the place of the European office and its functions were still in the preliminary stages. Mr Duda said the company at its board meeting in November had decided to merge ISMT and ISSAL. Mr O.P. Kakkar would be the Managing Director of the merged entity. The board would have Mr V. Balasubramanian as its Executive Director (Operations), apart from Mr Nirmal Chandra, Director and President (International Business and Product Development) and Mr Salil Taneja, President (Corporate Strategy and Development).
He said for the first half of the current fiscal, the company had recorded a turnover of Rs 515 crore with a pre-tax profit of Rs 61 crore. The company had closed the year ending March 2005 with a turnover of Rs 910 crore and was expecting to end the current fiscal with a turnover of about Rs 1,100 crore. Of this, about Rs 250 crore would come from exports. He said the company was now looking at growing at 40 per cent year-on-year for the next three years.
On the capacity expansion, Mr Duda said the tube production capacity was about 1,55,000 tonnes per annum and steel about 2,50,000 tonnes per annum. The company had already taken steps to de-bottleneck its capacity and would be looking at capacity expansion a couple of years later. He said with the existing capacity, it could produce up to three lakh tonnes of steel and about 1,55,000 tonnes of tube.
Mr Rakesh Duda added that the expansion, when required, would be carried out at its existing facility in Baramati. The company has three facilities Baramati, Ahmednagar and Jejuri near Pune.