In its attempt to consolidate in-house production of raw materials, Delhi-based manufacturer of steel bars, Rathi Bars Ltd is planning to begin production of ms billets by the end of 2008. | |
| The cast products used in manufacturing of steel bars will be produced at a volume of 150 tonnes per day and would help the company reduce the cost of production by 5-7 per cent. |
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| Among several varieties of steel bars, Rathi Bars Ltd manufactures 'Thermex' thermo-mechanically treated (TMT) and cold twisted deformed (CTD) steel bars at its manufacturing plant in Bhiwadi in Rajasthan. |
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| With most of its clientele including DLF, Omaxe and Parsvanath based in Delhi-NCR, the company holds a exclusive license to use the Germany-based Thermex technology in manufacturing and sale of TMT bars in the region, Anurag Rathi, director of Rathi Bars Ltd said. |
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| With an installed capacity of 80,000 metric tonnes per annum of steel bars, the company is intending to expand following a growing demand in the Rs 20,000 crore worth market in NCR for the products. |
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| To part finance the expansion, Rathi said that the company was entering the capital market with a public issue of 71,42,857 equity shares of Rs 10 each at a fixed price of Rs 35 per equity share aggregating to Rs 25 crore. |
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| Rathi added that the company hoped to increase its capacity utilisation from 75-80 per cent at present to 95 per cent by 2009. Rathi Bars earned a turnover of Rs 190 crore and a net profit of Rs 6 crore for the financial year 2006-07. |
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