Abhishek Steels has acquired 150acres near Jadcharla to set up the plant

Tag : structural steels

Hyderabad, Aug. 23 The Hyderabad-based Gautam TMT, also known asAbhishek Steels, has rechristened itself as Kedhar Groop. Thecompany plans to invest Rs 400 crore as part of its expansion overthe next two years.
“The investment will help the company move from being in the business of manufacturing TMT bars to become an integrated playerin the sector,” Mr Gopaal Agarrwal, Managing Director, KedharGroop, said while addressing a press conference here.
As part of the diversification plan, the company has acquired 150acres near Jadcharla to set up the plant, which is expected to becommissioned by 2010.
“The facility will have two furnaces with a capacity of 500tonnes a day, two structural mills with a capacity of 400 tonnes aday, one tower division which will use the products of thestructural mill and create the required value additions for thetransmission lines. This will have a capacity of 200 tonnes aday,” he said.
Also the facility will have a 25 MW power plant, which would usesmoke from the sponge iron plant to produce power. “Fivesponge iron plants with a capacity of 100 tonnes a day and aninduction furnace with 260 tonnes a day capacity will also come upin the plant,” Mr Agarrwal said.
He said that 75 per cent of the total investment will be raisedfrom various banks and the rest through internal accruals.
Once the plant is operational it will take the installed capacityfrom the current 60,000 tpa (tonnes per annum) to 0.8 million tpa.
“Last year, the turnover of the company was at Rs 60 crorewith a net profit of Rs 3 crore. This year we expect it to touch Rs100 crore,” he said.