ARS Steels to invest INR 40 cr. in expansion
22 January 2018
ARS Steels and Alloy International Pvt. Ltd., a producer of high quality steel products, has drawn up a INR 40-crore modernisation and expansion plan to increase production capacity at its Gummidipoondi plant, according to a top executive.
“We will double the capacity of furnaces from 1.2 lakh tonne to 2.5 lakh tonne and rolling mill from 1.8 lakh tonne per annum to 2.3 lakh tonne per annum,” said Ashwani Kumar Bhatia, managing director, ARS Steels and Alloy International Pvt. Ltd. “The expansion is scheduled to be completed by March 2019.”
Funds for the modernisation-cum-expansion programme will be met mostly through internal accruals. About INR 20 crore would be spent on automation and expansion at rolling mill and balance on furnaces.
Mentioning they had 25-30% of market share in Tamil Nadu and were eager to get into neighbouring States, Mr. Bhatia said, “This also calls for setting up one more unit. It could be in Bengaluru or Hosur, as the case may be. We might need INR 200 crore to set up a plant in Hosur. It would be 3.6 lakh tonnes per annum.”
The city-based company would soon start exporting about 10% of its produce to Maldives, Myanmar and Sri Lanka.
Last year, the company registered sales turnover of INR 600 crore and this year, it hopes to do INR 650 crore.
It plans to touch INR 750 crore in revenues by March 2020 of which INR 250 crore will come from thermal power plant.