Nalagarh Steel rides on realty boom

Himachal Pradesh-based Nalagarh Steel Rolling Mills Private Ltd, manufacturer of TMT bars (steel) has plans to set up a unit in Nalagarh with a total project cost of Rs 10 crore.

Also, viewing the boom in construction sector, the firm has plans to foray into angles, channels and gatters.

The new facility at Nalagarh would have a production capacity of 5,000 tonnes of angles/channels/TMT bars per month and is likely to start in three months.

Speaking to Business Standard, Nalagarh Steel Rolling Mills Private Ltd Managing Director Ravinder Bansal said, "The real estate sector is booming in the region, there is a monthly demand of around 250,000 tonnes of TMT bars/angles/channels in the northern region alone."

"Therefore, in order to cash in on the burgeoning demand, we are setting up a new unit in Nalagarh at a cost of Rs 10 crore with 5,000 tonnes per month as production capacity," he says.

At present, the company has about 35 per cent market share in Himachal Pradesh.

"Right now we are catering to the demand of Himachal Pradesh only, with the help of 100 dealers. But now we are also planning to explore the booming markets of Punjab and Haryana by appointing 100 more dealers in the two states by the end of next financial year," he added.

"At our fully automated Nalagarh unit we have an installed capacity to produce 6,000 metric tonnes of steel per month and Dev Bhumi will be available in both TMT and TOR (HSD Bars)," said Bansal.

With the annual group turnover for the year ending 2005-2006 pegged at Rs 96 crore, the company is hopeful to touch about Rs 120-125 crore in this financial year.