Visa Steel posts 90 per cent growth in profit,embarks on expansion

Kolkata, May 23 (UNI) Visa Steel, which posted a record 90 per cent growth in net profitability last year, is setting up a 0.5 million ton state-of-the-art stainless steel plant at Kalinganagar in Orissa at a cost of Rs 1400 crore by next year.

VISA Steel Chairman Vishambhar Saran told newsmen here today that apart from establishing the new stainless steel plant, they had decided to increase their overall production capacity by at least 200,000 ton during the current fiscal after acquiring an iron ore mine in Orissa to source their own product.

He said as on March 31 this year, VISA Steel had recorded a stupendous 52.6 per cent growth in total sale to Rs 385 crore, compared to Rs 252 crore, earned during 2004-05, " We are confident of achieving even a higher growth in sales this year in the wake of huge increase in demand of steel all across the country following the boom in real estate business, " Mr Saran stated.

He claimed that though VISA Steel's growth in revenue and profit was primarily driven by pig iron business, their revenue from the cokeoven business would also increase manifold from the current fiscal itself following the recent commissioning of 400,000 ton capacity charged coke over plant in Orissa.

" The recent worldwide increase in the demand for pig iron coupled with the huge hike in prices of steel will also contribute generously in Visa Steel's future revenue generation, " Mr Saran said to a query.

Elaborating on his expansion plan, the VISA Steel chief said after the commissioning of the Kalinganagar (stainless steel) plant by December, 2007, they would emphasise on the production of steel, suitable of fast expanding automobile and its related industries in the country.

He said VISA Steel's 0.5 million TPA fully integreated special stainless steel plant would contribute about nine per cent in India's global stainless steel sale in terms of volume and about 20 per cent in terms of value.

Moreover, he said with a vision to emerge as a globally competitve and world class integrated producer of steel and stainless steel, VISA Steel had embarked upon an expansion programme to set up a 50,000 TPA Ferro Chrome Plant,300,000 TPA Sponge Iron Plant, 50 MW Wate Heat Recovery Plant besides the Kalinganagar Stainless steel plant, Mr Saran said.

At the end of the last fiscal, VISA Steel entered the Capital Market and raised Rs 199.5 crore to part finance its expansion programme, the company Chairman informed.

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