Sujana Metal acquires three steel unitsMay 30th, 2008 - 11:28 pm ICT by admin
Hyderabad, May 30 (IANS) Sujana Metal Products Ltd (SMPL), part of Rs.30 billion Sujana Group of Companies, Friday announced the acquisition of three steel units. The acquired units - Saritha Steels, Glade Steels and Sree Ganga Steels - are located at Visakhapatnam, Hyderabad and Chennai respectively.
Sujana Group director V.S.R. Murthy told a news conference that SMPL has invested Rs.1.8 billion for these acquisitions and also for modernisation and expansion of their capacities.
The acquisitions were in line with the company’s strategy to enhance the capacity to one million tonnes per annum by 2010.
With these latest acquisitions, SMPL’s takeover tally has increased to five in less than a year. The units acquired earlier were Kamini Steels and Handum Industries. “Evaluation process of some more companies across prominent cities in south India is in progress,” Murthy said.
After the acquisitions, production capacity at SMPL has been expanded from 290,000 tonnes per annum last year to 728,000 tonnes now.
SMPL has targeted to reach a sales level of Rs.31 billion by 2010. In the July 2007-June 2008 period, the company’s sales turnover is expected to be in the range of Rs.14 billion. The company also plans to enhance its profit from an estimated Rs.500 million in the current financial year to Rs.3 billion by 2010.
Tags: acquisition, acquisitions, annum, glade, group director, modernisation, murthy, news conference, one million, products ltd, s sales, sales turnover, smpl, south india, steels, takeover, tally, tonnes