I expect power and infrastructure sectors in India to achieve a
healthy growth in the upcoming years, I am optimistic that AMPL will
emerge as one of the dominant representatives of that growth story.
Mr.Suresh kumar patni,Chairman,Ankit Metal and Power Ltd. outlines the
reasons for optimism of the Company
India is currently the fifth largest steel-producing nation in the
world. However, it''s per capita consumption of steel is still much less
compared to the developed countries. This wide gap in relative steel
consumption indicates that the potential ahead for India to raise its
steel consumption is high and projects an optimistic scenario for the
AMPL is on its path to maximize on its inherent synergies within the
current value chain and operates as an end-to- end manufacturer of
steel. A comprehensive strategy has been adopted to meet competition
from market players in the same domain by using backward and forward
integration from the manufacturing of sponge iron to rolled products to
lower cost of production as the major power requirement will be met
from the captive power plant.
I must emphasise that AMPL is an integral part of the attractive growth
coming out of the infrastructure sector through the manufacture of
downstream products like TMT bars. Over the years, we have increasingly
leveraged our rich industry knowledge and service capability, evolving
from manufacturers to solution providers.
We have embarked on an expansion plan to meet the growing demand of our
existing product lines and introduce new product lines in the maturing
market for high end value added products in stainless steel. In terms
of cost reduction, we have embarked on peptization project to use low
cost iron ore fines in place of expensive iron ore lumps to help us
meet price pressures from existing operators and new entrants in the
industry. The company has also established captive power plant to
reduce its energy cost.
The synergy in current expansions with existing operations and cost
reduction measures introduced by the company will add scale to our
operations and substantially improve the recovery of overheads,
de-risking the company''s bottom line in the medium term. Our existing
customer base will translate into a ready market for some of the new
products leveraging the brand more effectively.