Targets high cost of import of stainless steel with low cost of domestic production
To increase turnover by Rs 400 crore by next financial year from the current Rs 500 crore annually through the commissioning of the new stainless unit .
MAHALAXMI VINIMAY, a Rs 500 crore, TMT bar, billet, Ferro alloys and sponge iron manufacturer is all set to diversify into stainless steel production through the commissioning of a brand new 30,000 tonne annual capacity production facility in Asansol. The new plant will produce stainless at a price much lesser than the current imports, thus taking head on the importers of stainless steel in the short term.
Announcing the launch in Kolkata, Gopal Agarwal, managing director, Mahalaxmi Vinimay said, “For a company which is present across the entire value chain of iron and steel manufacturing, this was a logical forward integration and was infact long overdue. Once fully operational, the new stainless unit will push our turnover by an additional Rs400 crore annually. And all of this will be consumed in Eastern India alone.”
The new stainless unit of Mahalaxmi shall be onstream within nine months. The unit shall produce rounds, flats largely for industrial use. The company has already bought a 11 acre land in Asansol for setting up the factory. It shall invest an estimated Rs 50 crore towards plant and machinery besides the land that it has already procured in asansol. The new outfit will directly employ 200 skilled manpower besides another 300 casual labourers.
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Mahalaxmi has put in a smart strategy behind the investment. According to insiders in the railway ministry, Indian railways has decided to adopt steel as a primary product for all passanger compartments. This is likely to create huge demand for stainless. Besides, a Federation of chamber of commerce internal note projects a huge surge in auto sales over the next financial years pushing the demand for stainless in the auto industry to never before levels. Mahalaxmi plans to cash on both these trends through a quick commissioning of its stainless unit.
