Hyderabad, May 30 (UNI) A Listed Company Sujana Metal Products Limited (SMPL), part of the Rs 3,000 crore Sujana Group of Companies, today announced the acquisition of three steel units in three cities for Rs 180 crore.
The acquired units -- Saritha Steels at Visakhapatnam, Glade Steels at Hyderabad and Sree Ganga Steels at Chennai are part of the SMPL's plan for acquisitions, modernization and expansion of their capacities, besides two greenfield project manufacturing sponge iron and billets at Hyderabad and Chennai, with a total investment of Rs 470 crores.
''These acquisitions will enable SMPL to cater to the fast growing realty and infrastructure markets in Southern part of the country,'' Sujana Group of companies Chairman Y S Chowdary told media here.
The latest acquisitions by SMPL are in line with the company's strategy to enhance the capacity to one million tonnes per annum by 2010 through acquisitions and expansion plans. The company has applied for iron ore mines in the Bellary-Hospet belt of Karnataka.
''The rapid expansion has uniquely positioned the company with the widest range of long steel products in the country.'' With these latest acquisitions, Sujana Metal Products' takeover tally has increased to five in less than 12 months. The units acquired earlier are Kamini Steels and Handum Industries. The evaluation process of some more companies across prominent cities in South India was in progress.
The production capacity at SMPL has been expanded from 290,000 tonnes per annum last year to 728,000 tonnes per annum now at different locations. This includes the additional capacity of 300,000 tonnes per annum created through the acquisition and expansion of units at Visakhapatnam, Hyderabad and Chennai.
SMPL has targeted to reach a sales level of Rs 3100 crore by 2010. In the current financial year (July 2007-June 2008), the company's sales turnover was expected to be in the range of Rs 1,400 crore. Also the company plans to enhance its profit from an estimated Rs 50 crore in the current financial year to Rs 300 crore by 2010.
UNI DB VA VV SM1705