Sujana Metal plans Rs 1,400cr expansion

Sujana Metal Products Limited, part of the Hyderabad-based Sujana Group of Companies, has finalised plans for acquiring four mills at an investment of Rs 1,400 crore over the next three years.

"We have firmed up plans to acquire four more rolling mills in Hyderabad, Chennai and Viskhapatnam with an installed capacity of around 200,000 tonne per annum (TPA) for the manufacture of structural steel and about 120,000 TPA of TMT bars," YS Chowdary, chairman of Sujana group, said.

The acquisitions would increase the company's installed capacity for rolled products from the current 290,000 TPA to over 700,000 TPA, taking it to the leadership position in the secondary steel market in south India.

Sujana Metal had recently acquired a new TMT rolling mill at Hyderabad with an installed capacity of 100,000 TPA. Besides it also has an MS ingots-making facility of 50,000 TPA capacity.

"The closeness of our units to India's large consuming markets located in and around Hyderabad, Visakhapatnam, Bangalore and Chennai represents a competitive advantage for the company over its peers in distant locations, resulting in freight saving and ensuring short delivery schedules," Chowdary.

"These investments will enable us to strengthen our supply chain de-risking it from input price volatility and production disruption," VSR Murthy, group director, Sujana group, while refusing to divulge the time frame for the acquisitions and the mode of raising funds.