The major steel manufacturing company named the Maa Mahamaya Industries Ltd has recently announced that it is planning to double the current capacity of its first integrated mini steel plant in Vizianagaram district in the State of Andhra Pradesh. The officials of the company have stated that the plant is currently having a capacity of producing 1.2 lakh tonnes of TMT bars and rods per annum and the company would go for the expansion only if it gets the permission from iron ore linkage from the National Mineral Development Corporation (NMDC).
The Chairman and Managing Director of the Maa Mahamaya Industries Ltd, Mr. Ashok Kumar Agarwal has made the announcement on Saturday and said that the company did set up the plant at R.G. Peta village of Vizianagaram district. He also said that the commercial production in the plant began in the month of October, 2006. While talking about their current operations, Mr. Agarwal said, "Under the brand name, Mangal TMT, we are selling our products in Andhra Pradesh, Karnataka, Tamil Nadu and parts of Kerala. The NMDC has not given us any assured iron ore linkage so far, and we are sourcing our raw material from Bellary in Karnataka and Orissa. Once we get the linkage, we plan to double the capacity".
Mr. Agarwal was also requested to say something about their expansion plans in details and in reply, he said that Mahamaya made an investment of Rs 290 crore in setting up the plant in an area of 103 acres. Informing that the debt-equity ratio of the plant is 2:1, he said, "We need to have Rs 250 crore or so for expansion and there is no problem with funds. We only have to get ore linkage". The Vice-President (Finance) of the Maa Mahamaya Industries Ltd, Mr. Sandip Tiwari, also lend his opinions over the issue and said that the company is aiming at getting a turnover of Rs 254 crore for the current financial year. In his words, "We have achieved Rs 170 crore by the end of December and we are confident of achieving the target by the end of the fiscal". The General Manager (Production) of the company, Mr. Vittal concluded by saying that the company has overcame all the teething troubles and it is also getting great response from the market for its products.
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| Posted : 1/15/2008 |
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