Sujana Towers, a company of the Rs 3,000crore Sujana Group, is diversifying into designing customised products like boiler plates, piping and other components for specialty projects across the sectors, said group director VSR Murthy.
The company has created a technological structural fabrications (TSF) division to handle these projects. The TSF division is expected to be worth about Rs 350 to 400 crore at full capacity. “There is a lot of demand for technological fabrications in India and a large chunk of it is now being addressed by the Chinese imports,” he said. For instance, a public sector power plant manufacturer itself will need about 300,000 tonne of fabricated material year for various projects.
To meet this growing demand, Sujana is aiming to have a capacity of about 2,000 tonne a month in nine months and increase it to 5,000 tonne a month in two years to take the annual capacity to 60,0000 tonne a year. Currently, it is supplying components for Reliance's gasification project in Kakinada. It is also supplying boiler plates to power plant manufacturer in Tiruchi.
Sujana Towers recently completed the acquisition of its Mauritius-based subsidiary TeleSuprecon Limited, an engineering, procurement and construction company with operations in Mauritius, Kenya, Zambia and Malawi, for an undisclosed amount. Sujana Towers has a 51 per cent stake and the remaining is held by the parent company. The acquisition would aid Sujana in tapping the telecom and transmission tower market in Africa.
“Our studies indicate there is scope to grow in the telecom and transmission towers till about 2014,” he said.
The company recently set up a manufacturing plant for this in Chennai with a capacity of 100,000 tonne per annum. The plant would manufacture towers for Central and East Africa markets, where they would be assembled. It has another plant at Hyderabad, with a capacity of 130,000 tonne per annum to cater to the domestic markets.
It is also setting up a greenfield manufacturing facility for an expanded product range in Khanapur, near Hyderabad with an investment of about Rs 150 crore.
Sujana Towers reported net sales of Rs 747.74 crore for the 15-month period ended September 30, 2008 and a net profit of about Rs 45 crore.
