Essar Steel’s capacity expansion at its Hazira plant is ‘almost’ complete, which will take its total production capacity to 10 million tonnes per annum
Ruias-owned Essar Steel's capacity expansion at its Hazira plant is 'almost' complete, which will take its total production capacity to 10 million tonnes per annum (MTPA), a senior company official said.
"All the units at Hazira (steel plant) will be commissioned in a month or so... Expansion work at Hazira is almost complete, except for the coke-oven battery, which will be commissioned in 2012," Essar Steel CEO Malay Mukherjee said.
The company had earlier said it would invest about Rs30,000 crore to have a total production capacity of 10MTPA in its integrated plant at Hazira, Gujarat by the end of this fiscal. In December 2010, the company had said it aims to commission a Corex module capacity of 1.74MTPA and CSP Caster and mill of 3.5MTPA capacity by the current fiscal-end. Mr Mukherjee added that construction of 12MTPA pellet plant at Paradip, Orissa has also been completed and "mechanical commissioning has got started."
"It is in a final stage of commissioning," he said. Post-commissioning, the company will have a total pelletisation capacity of 20MTPA as it already has an 8MTPA pellet plant at Vizag in Andhra Pradesh. Pellet, made from iron ore, is a processed raw material used for steel making.
On the tie-up with Japanese firm, Kobe Steel, for setting up a specialised unit of auto-grade steel, the Essar Steel CEO said that a feasibility study is still on and a team of Kobe Steel was here last week in this regard. Mr Mukherjee added that the MoU is valid for a year within which the agreement has to be finalised.
He added the company plans to focus more towards making specialised steel used for automobile manufacturing, as the Hazira plant is now capable of making it and its plans will not be hurt by the devastating impact of tsunami in Japan. Essar currently has a market share of about 18% in the regular steel market in the country.
Everest Industries will set up a new manufacturing facility in East India to cater to the growing demand as it aims to cross Rs1,000 crore revenue in 2011-12
Everest Industries Ltd said it will set up a new manufacturing facility in East India to cater to the growing demand as it aims to cross Rs1,000 crore revenue in 2011-12.
"We are looking at setting up a new manufacturing facility in one of the Eastern states. The plant will be commissioned within a year and it will be fully operational in 15 months," Everest Industries executive director (operations) Y Srinivasa Rao said.
The company is looking at acquiring about 22 acres for the facility that will start with the production of roofing materials and other products will be rolled out in a phased manner, he added.
Mr Rao, however, declined to share further details such as the possible location and likely investment for the construction of the plant. Industry sources, however, said the company has been offered land by the Orissa government and the firm has also decided to go into the state.
When asked about its sales target, Mr Rao said: "Our target is to cross Rs1,000 crore revenue in next fiscal." Everest is expecting its total income to grow 12%-15% in this fiscal from Rs660 crore in 2009-10, he added.
Everest Industries currently has five manufacturing facilities in Kolkata, Nashik, Coimbatore, Kymore and Roorkee. It manufactures products like roofing materials, fibre wall boards and steel building solutions.
"We are seriously considering to expand our steel building solutions capacity as there is good growth in this business. We are looking at both expanding the existing plants and adding more facilities," Rao said, without giving details.
The company's current annual production capacity for steel building material is about 30,000 tonne at its Roorkee facility. Besides, the company is likely to consider setting up a new factory for the fibre cement boards as it is at present utilising almost 100% of its 90,000 tonne of installed capacity across different plants.
The company is now undertaking de-bottlenecking of operations and other efficiency enhancement measures to increase productivity till the new plants come up, he added.
On Monday, Everest Industries ended 2.82% down at Rs132.80 on the Bombay Stock Exchange, while the benchmark Sensex declined 0.22% to 17,839.05.
IDCO has entered a memorandum of agreement with IL&FS Water to set up desalination plants in Dhamara and Paradeep industrial area in Orissa for supply of water
IDCO has entered a memorandum of agreement (MoA) with IL&FS Water Ltd to set up desalination plants in Dhamara and Paradeep industrial area in Orissa for supply of industrial and domestic water.
The two companies will soon carry out a detailed survey to assess the requirement of desalinated water to meet the demand of up-coming industries in these areas. These desalination plants will be developed on a modular basis progressively to meet the increasing industrial demand. This is a unique step to solve the problems of nonavailability of sufficient sweet water for upcoming industries in those areas.
The land required for the project will be provided by IDCO after preparation of detailed project report. IDCO will also facilitate obtaining of clearances for the project and assist IL&FS Water to market the water.