"We will commission the 0.5-million tonne steel plant in Wardha district of Maharashtra by the end of the current quarter," Uttam Galva Commercial Director Ankit Miglani told PTI. The steel facility is coming up at an estimated cost of around Rs 3,000 crore, he added.
Uttam Galva already runs a 1-million tonne specialised steel products mill at Khopoli in Raigad district of Maharashtra. It imports the vital hot-rolled coil to make special steel products, which are consumed by domestic and global auto and consumer durables companies. It also imports inputs from its partner ArcelorMittal as well.
The Miglani family, the promoters of Uttam Galva, and ArcelorMittal entered into a co-promoter agreement last year. At present, ArcelorMittal holds about 34 per cent stake in Uttam Galva and the Miglanis hold about 38 per cent.
"ArcelorMittal has helped us with technical support in our projects as and when we have asked for it. They have also helped us in the new venture," Miglani added.
Uttam Galva saw its profit declining by 27 per cent to Rs 34.27 crore for the fourth quarter of 2010 fiscal mainly due to tax liabilities. The company had a net profit of Rs 46.96 crore in the year-ago period.
The company expects its sales and production volumes to continue rising by about 30 per cent in the current fiscal over last past fiscal. However, Miglani did not put a figure to the volume.
On the price outlook, he said, "By the end of this fiscal, we expect prices to be more or less at the year-ago level. During the past fiscal, steel prices were lower by as much as 35 per cent vis-a-vis FY09."
The deal was stuck since November following objections raised by Sebi