VSP to focus on value-added steel

Visakhapatnam Steel Plant is targeting to produce 3.467 million tonne saleable steel during this fiscal as against 3.07 million tonne last year.

Despite rise in prices of major raw materials, particularly coking coal and iron ore, the company is making efforts to reduce cost by over Rs 150 crore this fiscal. VSP has set a turnover target of Rs 13,600 crore for which it would focus on value-added steel. It plans to open new branches and new consignment sales agents besides expanding its district level dealership and rural distribution networks, a company release said.

VSP has also drawn up strategic investment plans to address its concern for raw material security. These include pursuing with iron ore- rich states for allotment of mines and joint venture opportunities with state mineral development corporations for value addition projects. It would also seek allocation of open cast coal blocks from the Centre. Strategic partnership with Neelachal Ispat Nigam Limited through an equity stake in MMTC is also being explored.