Essar Steel Pune unit eyes Rs 3,000 crore turnover in FY17
30 June 2016
Essar Steel Pune Unit Eyes Rs 3,000 Crore Turnover In FY17
30 June 2016
Riding high on increasing demand for pre-coated steel in domestic as well as international markets, Essar Steel Pune Facility (ESPF) is eyeing a 43 per cent jump in turnover to Rs 3,000 crore in the ongoing fiscal.
The unit is located at Sanaswadi, Maharashtra.
"We are looking at achieving a turnover of Rs 3,000 crore in FY17 compared with Rs 2,100 crore achieved in FY16. We expect our sales volume of PPGI (Pre-Painted Galvanised Iron) products to grow by 35 per cent to 6,25,000 tonnes per annum and turnover by 45 per cent in the current fiscal," ESPF CEO R V Sridhar told PTI here.
ESPF offers innovative products like camouflage steel, wood finish, abrasion resistant systems and wrinkle finish products, which caters to customers from automobile, defense, home appliances, construction and industrial sector.
The company's sales volume rose 71 per cent to cross 4,62,000 tonnes in FY16 compared with 2,70,000 tonnes in the previous fiscal. Total revenue was Rs 2,070 crore, a growth of 45 per cent as against a revenue of Rs 1,425 crore in FY15.
The growth of ESPF is in line with the rising capacity utilisation in Essar SteelBSE 0.41 % India's overall operations -- the company had a capacity utilisation of 70 per cent in the last quarter of FY16.
ESPF's capacity utilisation in the current quarter ending June 2016 has already shot up to well over 98 per cent, Sridhar said.
ESPF's turnaround has been triggered primarily by process innovations, operational excellence, low rework, expansion into new international markets, and a renewed focus on the domestic market and the value-added product range.
Increased productivity as a result of record capacity utilisation across all lines led to higher yields, he said.
Commenting on exports prospects, Sridhar said, the emphasis was on value added products and making inroads into geographies like Africa, NAFTA & EU. The company expects to export 100,000 tonnes in the current year.
During FY16 ESPF added over 125 customers in international market. It also doubled its customer base in the Middle East and some other regions. ESPF exports its products to more than 110 countries across the world.
Sridhar pointed out that the company exports 14 per cent of production in international market and 86 per cent in domestic market and hope to maintain the ratio due to higher domestic demand for its products.
Source : economictimes.indiatimes.com