Ramsarup Industries plans Rs 130 cr expansion

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Ramsarup Industries plans Rs 130 cr expansion

Ramsarup Industries plans Rs 130 cr expansion: New vision focuses on power sector

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Ramsarup Industries Limited, the second largest producer of steel wires after TISCO, has lined up extensive capacity expansion to the tune of Rs 130 crore within the current year. The expansion underlines Ramsarup's plans to focus in the power and transmission lines sector, going ahead.

The company expects a total business of around Rs 200 crore during FY06-07 from the erection of transmission lines business. This segment is seen as a major growth driver for the company, which expects profits to the tune of Rs 20 crore from here this year alone. Even though the company's transmission line business has started recently, Ramsarup says that this will soon constitute up to 15% of its revenues.

The company already has orders worth Rs 83 crore from Jodhpur Vidyut Vitran Nigam Limited, and another order of Rs 40 crore is expected in the next fortnight. Total business of Rs 750 crore is expected in this segment during the next fiscal.

"We at Ramsarup recognize that the power sector will be a core area for the country's growth plans in the years ahead. With our expansion plans, we are perfectly placed to leverage the opportunities here," said Mr. Ashish Jhunjhunwala, CMD, Ramsarup Industries.

Ramsarup has also earmarked Rs 65 crore for an expansion of its wire capacity, including the production of Low Relaxation Prestressed Concrete Wires. The total capacity increase will be by around 60,000 metres per year, and the company is in the process of acquiring 40 acres of land in West Bengal for the project. The wire expansion project is expected to yield around Rs 250 crore to the topline of the company and s 25 crore to the bottom line. Suppliers of the plant machinery have already been short listed.

Ramsarup Industries is mainly into the manufacture of steel wires and TMT bars, which it supplies to the power and infrastructure sector. The foray into transmission lines and its recent venture of a 20 MW bio-root power generation plant signals the compay's new emphasis on the power sector. Ramsarup already has backward integration, with its production of 7,00,000 MTPA integrated steel plant to produce steel billets and 20 MW power at Kharagpur.

Sourced From: Concept Public Relations India Pvt. Ltd