Steel Exchange eyes Rs 1000 cr turnover in three years

Visakhapatnam-based Steel Exchange India Limited (SEIL), is eyeing a turnover of Rs 1,000-crore over the next three years following the merger of steel trading and manufacturing businesses of Vizag Profiles Limited with itself.

SEIL achieved a turnover of Rs 510 crore during the last fiscal.

"Recently, the board of directors of SEIL decided to merge the steel trading and manufacturing businesses of Vizag Profiles Limited with SEIL. This will help us increase our turnover to Rs 1,000 crore within two-three years," B Suresh Kumar, director, SEIL, told Business Standard. Vizag Profiles registered a turnover of Rs 200 crore in 2005-06.

Apart from the steel trading business, Vizag Profiles Limited has two wire drawing units with an annual production capacity of 25,000 tonnes and one re-rolling mill with a production capacity of 30,000 tonnes per year at Visakhapatnam.

Both the companies have almost the same management and promoters, and the directors of both the companies have agreed to merge the steel manufacturing and steel trading businesses of Vizag Profiles with SEIL, he said.

SEIL has a steel melting unit at Ravulapalem in East Godavari district with a capacity of 90,000-tonne and a steel re-rolling mill at Visakhapatnam with a capacity of 72,000-tonne. It is also engaged in steel trading business. During the last fiscal, both the companies together earned a net profit of about Rs 4.25 crore, he stated.