Sujana Metal buys three steel unitsJune 2nd, 2008 - 6:16 pm ICT by IANS
Mumbai, June 2 (IANS) Steel manufacturer Sujana Metal Products Ltd (SMPL), part of the Rs.30 billion Sujana group, has bought over three steel units in keeping with its strategy to expand production capacity to one million tonnes per annum by 2010. Announcing this here Monday, Sujana group chairman Y.S. Chowdhary said the units acquired are Saritha Steels (Visakhaptnam), Glade Steels (Hyderabad) and Sree Ganga Steels (Chennai).
“Simultaneously, SMPL has taken up a massive programme for modernisation and expansion of both the acquired units and its existing facilities at the three locations,” he said.
Chowdhary added that SMPL has planned a total investment of Rs.8 billion ($188.7 million) for the first phase of the acquisitions, modernisation and expansion of the capacities.
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,” group director V.S.R. Murthy said.
SMPL managing director R.K. Birla said the production capacity has been expanded from 290,000 tonnes per annum last year to 728,000 tonnes per annum now at different locations. This includes the additional capacity of 300,000 tonnes per annum created through the acquisition and expansion of units at Visakhapatnam, Hyderabad and Chennai.
Talking about the sales, director (finance) S. Hanumantha Rao said: “We are targeting one million tonnes per annum finished capacity and sales of Rs.31 billion by 2010. In the current financial year (July 2007-June 2008), the company’s sales turnover is expected to be in the range of Rs.13.5 billion to Rs 14 billion.”
Tags: annum, birla, chowdhary, director finance, glade, group chairman, group director, modernisation, murthy, products ltd, progress group, rs 8, s sales, sales director, sales turnover, smpl, south india, steel manufacturer, steels, tonnes