The Hindu Business Line : Magnum Steel plans Rs 212-cr greenfield plant in Chhattisgarh

CONSTRUCTION and alloy steel maker Magnum Steel Ltd has charted out plans for setting up Rs 212-crore greenfield wire rod and long products plant in Chhattisgarh. The company has already acquired around 36 acres of land and plans to acquire a total of around 500 acres within the next six months.

Speaking to Business Line, the company Chairman and Managing Director, Mr I.C. Jindal, said the company has signed a memorandum of understanding (MoU) with a Chinese firm earlier this month for equipment and technology.

"We will be using iron ore fines to make pellets and eventually sponge iron. The Chhattisgarh plant will have one melting shop, rolling mill, pellet and sponge iron plants," Mr Jindal said. "If everything goes on schedule the melting shop and the rolling mill should be commissioned by May next year and the pellet plant sponge iron plants are expected to go on-stream by the end of 2006," he said.

The company currently makes spring steel, flats, CTD bars and alloy steel rounds. It has five rolling mills in Madhya Pradesh and three other group companies, namely BR Associates Private Ltd, Vibha Steels Private Ltd and IRS Industries Private Ltd, which supply raw material to Magnum Steel.

The group has a turnover of around Rs 300 crore out of which, Magnum Steel accounts for around Rs 150 crore. "We plan to merge all the three companies into Magnum which will give us the advantage of larger size. The project would be funded around 40 per cent from internal accruals, while for the remaining 60 per cent we will either go in for debt or may even think of an IPO," he said.

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