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| MPIL Steel setting up Rs 170-cr plant in K'taka |
| K Rajani Kanth / Chennai/ Hyderabad Dec 29, 2011, 00:13 IST |
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MPIL Steel Structures Limited, a Mumbai-based turnkey solution provider for metal building products and integrated structural steel fabrication, is setting up a steel fabrication plant in Bellary district of Karnataka with an incremental investment of around Rs 170 crore to be made over two years.
The facility, coming up on 21 acre, would have an initial annual capacity of 25,000 tonne, which would be scaled up to 100,000 tonne in the next two years. The plant would start production from April 2012, Priyanka Gupta, executive director of MPIL Steel Structures, told Business Standard.
“We have already made an initial investment of Rs 75 crore to kick start the work on the project. The entire project will be funded with 40 per cent promoters’ equity and the remaining through traditional debt from the State Bank Group,” she said.
According to Gupta, the company intends to leverage the freight advantage that Bellary (situated on the Karnataka border adjoining Andhra Pradesh) offers, besides the abundance of hot-rolled steel in the region.
“The new plant will be making only heavy structural steel and will be catering to the soaring demand by the infrastructure sector, including airports and high-rise buildings, in both the states,” she said, adding the new plant was expected to generate revenues of Rs 250 crore in the first year and become a Rs 500-crore entity by itself once it crosses the 100,000 tonne a year capacity.
The over Rs 200-crore company, which currently has an annual production capacity of 60,000 tonne of structural steel at its Tarapur plant in Maharashtra, is now focusing on exploring steel as a solution for supporting the installation of solar farms and other projects pertaining to renewable energy.
Towards this, the company has recently installed solar panels on its factory rooftop, which optimises captive generation of electricity from solar power and seamlessly integrates with the internal power supply of the factory.
The SMART (Solar Mounted Advanced Renewable Technology) building system, for which Hyderabad-based SuRe Energy Systems is the EPC partner, involves mounting of solar panels on the roof of any pre-engineered building. It can be pre-installed or retrofit. Installation of the roof-mounted solar system costs Rs 18,000 per square metre.
With a separate production line of 1,200 tonne a month for the SMART building systems already in place, Gupta said, the company would now commercially offer this solution in the entire southern belt.
“We are looking at making 18 full-fledged installations in 12 months from now,” she said, adding the solar division, being set up independently, was expected to generate Rs 60 crore in revenues in the next one year.
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