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Brazilian steelmaker Gerdau, which has invested around ₹2,400 crore in its India plant, is targeting the domestic automotive sector to drive up sales. It also plans to export to the US and South Asian nations in the near future.
The 300,000-tonne-a-year integrated steel plant, located in Tadipatri in Anantapur district of Andhra Pradesh, is set to be fully operational by October-end, according to Sridhar Krishnamoorthy, the recently appointed Managing Director of Gerdau Steel India.
In addition to auto, the company is also targeting transportation infrastructure, defence, energy (oil and gas pipelines), with its globally established special long steel.
The domestic demand is around 4 million tonnes at present, and is expected to grow at a healthy rate, Sridhar told BusinessLine here on Tuesday.
Gerdau, founded in 1901, is the 14th largest steel producer in the world with a revenue of $18.5 billion and 45,000 employees across five continents. It also owns iron ore mines in Brazil.
In the just-concluded football World Cup, the company helped in the construction and modernisation of 8 stadiums.
The company entered India in 2007, through a joint venture with Pune-based Kalyani Group to acquire SJK Steel Plant at Tadipatri.
Gerdau Steel has now taken near total control of the venture.
Post acquisition, “We have added new facilities such as a sinter plant, melt shop and a coke oven plant. To make the plant power-sufficient, a captive unit with a capacity of 15 MW is being set up, while a 6-MW one is functional”, Sridhar added.
Two States plansAt Tadipatri, Gerdau employs nearly 1,500 people, involved in construction of the coke oven plant, special facilities and a township.
At least 200 employees have been sent to Brazil, the US and Mexico for skill upgrading.
On opportunities in the two States of Telangana and Andhra Pradesh, Sridhar said: “We are optimistic and are exploring possibilities of taking up mining. We are sourcing limestone and dolomite locally, and purchase iron ore in e-auction from Bellary mines. We can play an active role in the industrialisation efforts of both States.”
Gerdau Steels has set up warehouses in Chennai and Faridabad.
It has marketing and business presence in the auto hubs of Chennai, Faridabad, Pune and Bangalore.
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