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New Delhi, April 7 Home-grown steel-product maker, Goodluck India, is eyeing a near ₹200 crore capex as it steps up on exports across verticals like auto tubes and forgings on one hand; while on the other it looks at an increased play in the defence supplies segment.
The company has more than doubled its exports turnover in FY22 to over ₹1,100 crore, up from ₹475 crore in FY21. The US – the North American nations – and the Europe are major export markets for auto tubes and forgings.
The BSE-listed entity manufactures a wide range of engineered steel products and structures, galvanised iron, cold rolled coils, auto tubes, among others. Its offerings are used in automobiles, oil and gas and in infrastructure.
Capacity ramp up
According to Ram Aggarwal, CEO, Goodluck India will invest ₹100 crore at its Sikandrabad plant in Uttar Pradesh in the current fiscal. Capacities at the unit will be ramoed up by 50 per cent, from 60,000 tonne per annum to 90,0000 tonne A part of the capex will also go towards its Bhuj facility in Gujarat, where there will be a 25,000 to 30,000 tonne per annum addition to its already existing annual capacity of 80,000 tonne.
Among its six units (five in UP and one in Gujarat), the company has an annual capacity of 3.40 lakh tonne.
Capex will primarily be through internal accruals and partly bank funding.
“We intend to take it up capacities to 5 lakh tonne per annum in the next two to three years. Of these, 60,000-odd tonne addition has been chalked out in FY23. Exports demand is strong in the auto tube and forgings segment,” he told BusinessLine.
The company expects to close FY22 with a turnover of ₹2,600 crore; while the target for FY23 is ₹3,200 crore.
Over the next three-odd months, the company’s order book (exports and domestic market together) stands at around ₹1000 crore, with strong demand across geographies including India, the US, Europe and Australia.
“We believe the export momentum is sustainable. But yes, issues like freight rates and energy costs continue to be a worry, especially the impact of some of these costs on the bottomline,” Aggarwal added.
Defence supplies
Goodluck, he said, is also eyeing increased presence in the defence supplies segment. It has already applied for land in the Aligarh region. A preliminary investment of ₹100 crore has been earmarked for the unit while other details like capacity will be decided “once land is allotted”.
“We intend to participate in the defence sector supplies and so we are looking for land in the upcoming Defence Corridor in Uttar Pradesh. Project details will be finalised as and when we get the land parcel,” he said.
The company is a component/engineering product supplier to some of the primary makers of defence products and helicopter-makers.
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