Uttam Galva to double production capacity

New Delhi, July 30 (UNI) As part of its expansion plans, Uttam Galva Steels will ramp up the production capacity of cold rolled steel by 100 per cent to one million tonne per annum from its existing 0.5 MTPA.

''We have embarked on various major expansion projects, which are in various stages of completion. As part of it, we will increase the production capacity of cold rolled steel by 100 per cent. The benefit of this expansion will be seen in the coming quarters,'' Uttam Galva Steels Director (Commercial) Ankit Miglani said.

Company's exports for the quarter ended June 30, 2006 stood at Rs 321.66 crore as compared to Rs 304.32 crore during the same quarter last year.

Mr Miglani said while Uttam Galva continues to maintain the export thrust, it is their constant endeavor to increase the volumes in the domestic market. The thrust will in the value added segment which will strengthen our topline and bottom-line and enhance profitability.

Uttam Galva sells about 70 per cent of its galvanised steel and 50 per cent of its cold rolled steel production in the export market to 117 countries.

The company recorded an operating profit of Rs 56.24 crore in the first quarter ended June 30, 2006 as compared to Rs 51.42 crore in the corresponding quarter last year.

The gross sales for the quarter stood at Rs 574.71 crore as against Rs 561.05 crore for the corresponding quarter previous year.

Early this year, Uttam Galva bagged a 170 million dollar order from Stemcor, international distributer of steel and raw materials, to supply cold rolled, galvanised and color coated steel.

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