SRMB embarks on national expansion with Rs 200 cr investment

Kolkata,Jan 05 (UNI)SRMB Udyog,a leading manufacturer of construction steel,has embarked on an exapansion programme to increase its capacity to 400,000 tonnes by March 2008 with an investment of more than Rs 200 crores.

Announcing this and other forward looking steps of the company whose annual turnover was expected to touch the Rs 300 crores marks by March this year,SRMB Executive Director Ashis Beriwal and its Vice-President,Marketing,M M Abraham here today said they had very recenly entered into a unique "buyback arrangement" with two major steel making units in Allahabad and at Kodarma in Jharkhand with an agreement to purchase their entire product range of more than 100,000 tonnes per annum.

"This apart we have recently acquired about ten acres of land near the steeltown of Durgapur at a cost of Rs 50 crores for establishing the SRMB's third principal unit within the next one year",Mr Beriwal said adding that when completed the entire project was likely to cost more than Rs 150 crores with majority of equipment coming from Germany.At present SRMB had two plants near Kolkata.

Claiming that their complete buyback arrangement with two external units was the first of their kind in the coutry so far,Mr Beriwal said if the arrangement was found successful,they might opt for similar arragement with reputed local units in Punjab,Tamil Nadu, Kerala and Gujarat primarily to cater to the demandfs from local markets.

"In fact our talks with a leading steel maker in Gujarat are at final stages," Mr Beirwal claimed.

Referring to his plan to introduce a number of value-added new products in the coming months,the SRMB ED said they had earmarked Rs seven to eight crores during the current financial year for popularising their branded products after their entry into the domestic market.

Asked about their plan for exports both Mr Abraham and Mr Beriwal said since the drastic reduction in international steel prices(by about 25 per cent since 2005)the demand from abroad had nosedived forcing them to fully concentrate on intensifying their domestic market.

UNI