The Hindu Business Line : Ramsarup Ind may complete expansion by Dec

Ramsarup Industries Ltd, the second largest maker of steel wires after Tata Steel, targets to complete its Rs 52-crore ongoing expansion programme in the TMT and wire segments by December. The production from the expanded capacity will thus begin from the same month or from January.

The expansion project at Shyamnagar in West Bengal will have capacity to produce about 80,000 tonnes of TMT and wires worth about Rs 28 crore, while the other Rs 24-crore expansion project at Kalyani in the State will produce an additional 24,000 tonnes of wires. Up to 50 per cent of the additional capacity is expected to commence by January 2007.

Financials

According to a company source, the company's Q2 profit after tax (PAT) has increased by 53.28 per cent to Rs 8.17 crore (Rs 5.33 crore) and for the half year it has gone up by 41.28 per cent to Rs 18.38 crore (Rs 13.01 crore). Net sales have increased by 12.16 per cent in Q2 to Rs 272.12 crore (Rs 242.61 crore) and during the half-year it has gone up by 29.74 per cent to Rs 584.34 crore (Rs 450.38 crore). Export sales for the same period have grown by 326.18 per cent to Rs 27.19 crore (Rs 6.38 crore).

Export sales

The company has decided to focus on the export market in Africa and other neighbouring countries. It is currently executing orders for bailing wires to Africa and an order for a project in Nepal, in which it is aided by a Japanese company. Ramsarup Industries also expects repeat orders from these markets and sees high margins in South Africa.

Export sales have grown by about 314 per cent for the quarter ended September 30 at Rs 16.7 crore (Rs 4.3 crore)

The Ramsarup Industries' MD, Mr Ashish Jhunjhunwala, said: "We see a strong opportunity in the export side, and are scouting for further contracts, other than the ones we already have in hand."

Meanwhile, construction at Ramsarup's recently acquired land at Durgapur has started and there will be a further increase in wire capacity by 60,000 tonnes per year, involving a total capital expenditure of Rs 98 crore.

More Stories on : New Projects | Steel | West Bengal

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page