Bhushan Inds Bags Rs 193-Cr Loans

The Rs 600-crore Bhushan Industries Ltd, which is setting up a Rs 290-crore modern steel unit at Serampore, West Bengal, has obtained a rupee term loan of Rs 173 crore from financial institutions and a foreign currency loan of Rs 20 crore.

There is an internal generation of Rs 50 crore and Rs 24.5 crore of unsecured loans from the promoters, according to senior state government sources.

The project is a modern unit for value-addition to steel with cold rolling facilities of 150,000 tonne per annum, and galvanising facilities of 120,000 tpa, based on the latest technology. It has an equity share capital of Rs 22.5 crore.

 

Bhushan Industries plans to export 40 per cent of the output to neighbouring countries and 60 per cent will be sold in the domestic market.

The unit is proposed in view of the large savings in freight costs to cater to the vast market existing in eastern and north-eastern parts of the country with substantial annual consumption and also cater to the export market in neighbouring countries like Bangladesh, Malaysia, Taiwan, Thailand, Philippines, Myanmar, Bhutan and to South Africa, via Singapore.

In particular, the cold rolled-full hard steel will be exported to Bangladesh where a huge demand exists for the product, by numerous units engaged in galvanising at small scales.

The focus shall be mainly on galvanised/plain corrugated sheets primarily for product applications like roofing and construction activities.

Bhushan Industries has plants located in Punjab, Chandigarh and Delhi.

Shamon Ispat, part of the flagship company Shamon Engineering Corp, has also recently set up a Rs 33-crore cold rolling unit in Haldia. It will produce cold rolled steel sheet in coiled form.

The company imports hot rolled coils or hot rolled pickled and oiled coils from overseas sources, and exports the cold rolled sheets to Bangladesh and Nepal.

The current production capacity is 5,000 tonne of cold rolled sheet per year. The company is targetting markets of Far East and Africa.