Surana Industries to invest Rs 473 cr for steel complex in K'taka

New Delhi, Sep 25 (UNI) Chennai-based Surana Industries Ltd (SIL), leading manufacturers of steels, today said it will invest Rs 473 crore to set up an integrated steel complex at Raichur, Karnataka, for manufacturing special steel meant mainly for the automotive industry.

The Karnataka government has provided 164 acre land for the Raichur Project, which will commence operations from December 2007.

The Raichur steel factory will have a capacity to produce 1,28,000 tonnes of sponge iron, 136700 tonnes of steel melting shop and 1,32,500 tonnes of rolling mill annually. The plant will have 30 MW capacity.

SIL Managing Director Dineshchand Surana said, ''We are putting up this project since India is emerging as a global hub for manufacturing and outsourcing of auto and automobile components coupled with capacity expansion by all the major players''.

He added that with huge capacity expansions, the demand for special steel in vaious industries such as automobiles, industrial machineries, defense and railways etc, will increase in the domestic and global markets, added Mr Surana.

SIL has signed EPC contracts with leading firms for setting up this project, the company will employ more than 1200 persons for the project.

The company is expecting a Rs 500 crore turnover from the Raichur project in its first year, and a total turnover of Rs 1,200 crore by March 31, 2008. SIL clocked a turnover of Rs 625 crore in the last fiscal.

During the year ending March 31, 2006, the company recorded a sales turnover of Rs 625.55 crore with a net profit of Rs 23.44 crore.

SIL is a part of the Rs 2,000 crore Surana group which was incorporated in 1991. The company has a large market share in Tamil Nadu and South India.

The company possesses a fully operational state-of-the-art steel manufacturing plant at Gummidipoondi, Chennai, which produces high strength deformed steel bars, thermo mechanically treated bars known as suran TMT, CRS reinforcing bars, cold twisted deformed bars, mild steel rounds and mild steel structurals.

The company is producing 1.09 lakh tonne of thermo-mechanically treated bars and 30,000 tonne of mild steel ingots annually at the Gummidipoondi plant.

The Madhavaram facility has a capacity o manufacture 60,000 tonne of cold rolled products.

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