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Premium quality steel producer ARS Steels & Alloy International is planning to ramp up its production capacity and also expand its frontiers to the neighbouring States in South India over the next few months, according to a senior official of the company.
“Currently, we have a steel production capacity of 1.8 lakh tonne per annum (LTPA) and we are planning to increase it to 2.5 LTPA by December 2020,” Ashwani Kumar Bhatia, Managing Director, ARS Group, told BusinessLine here.
He was speaking on the sidelines of an event hosted to create consumer awareness about the company’s ‘ARS 550D’ premium quality Thermo Mechanically Treated (TMT) steel bars and to explain the savings and safety benefits of adopting to the premium quality steel bars.
ARS Steels’ capacity expansion, which would entail an investment of around ₹ 60 crore, will be undertaken within the precincts of its existing manufacturing plant at Gummidipoondi.
In addition to its plant expansion, the city-based premium steel producer is also looking to set its foot in the neighbouring States.
“We are dominant in Chennai as well as rest of Tamil Nadu, so now we are planning to go to Andhra Pradesh, Karnataka and Kerala,” Bhatia said.
ARS Steels, which has a 40 per cent market share in premium steel segment in Chennai, closed FY19 with a turnover of ₹ 520 crore. The company expects a turnover of around ₹ 1,000 crore after the expansion process is completed.
The ARS Group, which also owns ARS Energy, is planning to commission a 100-MW plant in addition to its existing 60 MW capacity by 2023. The coal-based thermal power plant is located at Gummidipoondi in the outskirts of the city.
“In power, we have 60MW and we are planning to have another 100 MW which will need an investment of around ₹300 crore,” Bhatia said, adding that the company already has all the necessary infrastructure such as land, coal handling plants and transmission lines.
He also added that investment for both the steel plant expansion and new power plant commissioning will be funded through the company’s accruals.
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