Sujana Metal acquires 3 steel units for Rs 180 cr

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New Delhi, May 30 (UNI) Sujana Metal Products Ltd (SMPL), a part of Rs 3,000 crore Sujana Group, today said it has acquired three steel units with an investment of Rs 180 crore.

The units -- Saritha Steels, Glade Steels and Sree Ganga Steels -- are located at Visakhapatnam, Hyderabad and Chennai respectively.

''These acquisitions will enable SMPL to cater the fastest growing realty and infrastructure markets in southern part of the country,'' Sujana Group Chairman Y S Chowdary said.

The company, set up in 1988, has planned a total investment of Rs 180 crore for these acquistions, along with modernisation and expansion of their capacities, he added.

The latest acquisitions 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 earlier acquired units like Kamini Steels, Handum Industries and Lakshmi Gayatri Sponge Iron. ''Evaluation process of some more companies across prominent cities in South India is in progress.'' The production capacity at SMPL has been expanded from 2,90,000 tonnes per annum last year to 7,28,000 tonnes per annum now at different locations, including the additional capacity of 3,00,000 tonnes per annum created through the acquisition and expansion of units at Visakhapatnam, Hyderabad and Chennai.

The company aims to reach a sales level of Rs 3,100 crore by 2010. In the current financial year (July 2007-June 2008), the company's sales turnover is slated to go up to Rs 1,400 crore.

It also plans to enhance its profit from Rs 50 crore in the current financial year to an estimated Rs 300 crore by 2010.

UNI SBA SR1731

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