Goodluck India to set up production facility in Kutch for steel products

The new facility, to be built with Rs 74 crore investment, will have capacity of 72,000 MTPA

Last Updated : Apr 11 2017 | 12:48 PM IST

The Ghaziabad (UP) headquartered Goodluck India Ltd (formerly Good Luck Steel Tubes Ltd) – a producer of steel tubes, pipes & precision tubes - will set up its first manufacturing facility in Gujarat at Sikra village (Kutch) with a capacity of approximately 72,000 metric tonne per annum (MTPA).

The company’s existing manufacturing facility at Sikandrabad (Uttar Pradesh), having capacity of 230,000 MTPA, is presently running at optimal capacity utilisation. The new facility will take the company’s total production capacity to 302,000 MTPA.

Goodluck India will invest Rs 74 crore for setting up the new manufacturing facility, which is expected to be commissioned by April 2018.

The location of proposed facility, which is close to two ports - Kandla and Mundra, is strategically very suitable as it will reduce freight cost for exports to a significant extent and will give an edge over the competitors. Exports accounted for about 27 percent of the company's total revenue (of Rs 1098.9 crore) in FY16.

Goodluck India - which converts steel into customised precision products - manufactures cold rolled steel products, structural steel towers, auto tubes, pipes, forgings and flanges. The company’s products serve high-growth sectors such as auto, power, infrastructure, oil & gas, solar, railways, etc.

Over the years, Goodluck India has strategically shifted its focus towards the high-margin value-added steel products like forgings and structured steel with the share of these products growing from 39 percent in 2011 to 53 percent in FY16.