Surana Strips (SSL) was incorporated as Medak Stainless Rolling Pvt Ltd. The name was changed to Ranka Alloys & Strips Pvt Ltd on 4 Apr.'86. The company was taken over from the Rankas by the promoters of the Surana Udyog group in 1987 as a sick unit and renamed Surana Strips Pvt Ltd on 15 Sep.'87. It was converted into a public limited company from 4 Nov.'92 and became a part of the Surana Udyog group. The name of the company was changed to P.M.Telelinks Ltd in October,2002 with the prior approval from the Board.
SSL manufactures cold-rolled steel strips (inst. cap. : 50,000 tpa). The company has been producing cold-rolled steel strips for over a decade. The required know-how has already been acquired and production has stabilised over the years.
The company expanded its capacity from 20,000 tpa for cold-rolled steel strips of narrow width of 400 mm to 50,000 tpa for 750 mm. The cost of expansion was met by a term loan from the IDBI and fresh capital raised through a rights issue.
SSL has now diversified into tube manufacture, a product which has extensive demand. A separate unit has been set up near Patancheru to produce 1000 tpa of tubes, ranging from 1/2 to 2 inches diameter and commercial production has already commenced. The installation of machinery for the manufacture of boiler tubes is expected to be complete by Mar.'96. The total outlay for both the projects amounting to Rs 6.5 cr is funded mainly by debt and internal accruals.
Since the steel industry was badly performing on many counts like excess capacities,dumping by imports the company had coupled with operational losses. And consequently the networth of the company was fully eroded. The company has now been declared as Sick Industrial Company and therefore made a reference to BIFR as per the provisions.
It is also planning to diversify into high value added products and thrust on exports.