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Ganesh Foundry and Castings Ltd., which manufactures and sells TMT bars, is looking to more than double its production capacity by setting up a 25,000 tonne plant through brownfield expansion at its existing manufacturing site in Bihar. The company has a production capacity of 20,000 tonnes per annum and has been running at around 75-80 per cent of its capacity utilisation.
According to Ashok Kumar Bajoria, MD, Ganesh Foundry and Castings, the company has land available for the expansion at its existing factory site and will invest around ₹20 crore in the expansion. The project is expected to be completed by the middle of 2023.
“The demand for TMT bars had witnessed a decline during the Covid period in 2020, and our capacity utilisation dropped to as low as 40 per cent. But then, it started picking up in 2021 and it is looking better this year. We cater to the construction industry in the north Bihar markets,” Bajoria told businessline.
The company, which has a turnover of around ₹100 crore at present, is expecting its revenues to increase to ₹250 crore by FY24, backed by the expansion and its proposed diversification programme.
Diversification
The company, which is currently in the business of manufacturing and selling TMT bars, is also exploring the possibility of diversifying into new business verticals, including plywood and laminates. A possible foray into the tile business is also on the cards.
“Since we cater to customers in the construction industry and we have a strong dealer network, we are thinking of looking at related businesses like plywood and laminates, which go into construction. We are currently studying the market,” he said.
The company will start working on this proposed plan once it completes its expansion project by mid of 2023. The plywood and laminate plant is likely to come up in Bihar and the company would look for fresh land to set up the project.
This apart, the company is also mulling the possibility of putting up a plant for manufacturing tiles in West Bengal at an estimated investment of around ₹150-200 crore.
“We are currently surveying the market. We are not likely to do this immediately, but will look at it once we have firmed up our plans on the plywood and laminates plant. But there is great potential for setting up a tile unit in West Bengal as there are no big manufacturers in the State and we can cater to the entire eastern region,” he said.
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