Kamdhenu Ispat forays into structural steel sector

New Delhi, May 1 (UNI) Construction material major Kamdhenu Ispat today announced its foray into structural steel manufacturing segment for production of various products like angles, beams, channels and flats involving stategic franchisee association.

The company has inked strategic tie-ups for manufacturing of Kamdhenu brand structural steels with Venus Rolling Mills in Maharashtra, Shree Ambika Alloys in Punjab and Kundlas Loh Udyog in Himachal Pradesh to cater to the market with Kamdhenu brand structural steel across the respective regions.

Kamdhenu Ispat Ltd (KIL) has also entered into a franchisee agreement with Raika Ispat Udyog in Chhattisgarh for manufacturing of Kamdhenu brand binding wires, a new venture in the steel segment.

The structural steel segment is growing with an annual Compound Annual Growth Rate (CAGR) percentage of 6 per cent, the production of structural steel remained 3.8 metric tonnes in the year 2006-07.

Under this scenario, KIL in association with franchisee units has kept the production target of manufacturing three lakh tonnes structural steel in the current financial year, which would be further elevated to 10 lakh tonnes in the next two years.

Elaborating on the latest foray of KIL into structural steel segment, Mr Satish Agarwal, Chief Managing Director of the company said, ''the structural steel segment is growing on fast pace with the construction boom in the country, it is predicted that by the year 2011-12, the annual production capacity of the sector as a whole would reach 5 million tonnes and of that the Kamdhenu would be able to produce about 25 per cent of the total structural steel production in the country.'' With its high end quality monitoring body in place, the KIL ensures the utilisation of best quality raw materials for the manufacturing of structural steel. Angles, channels, beams and flats that are produced from this structural steel are tough to hold frames of any size and proportion, he added.

With a strong network of over 2,500 dealers and distributors across the country, Kamdhenu has carved its own niche in India's booming construction segment. The products will be used in building of bridges, buildings, transmission line towers, industrial sheds as well as in the manufacturing of automotive vehicles, ships, etc.

The company has already established a successful model for manufacturing of reinforcement bars with its 25 franchisee units having annual production capacity of one million tonnes which are located across the country.

The provisional turnover of the company for 2006-07 is pegged at Rs 300 crore and a target to achieve a turnover of over Rs 450 crore is set for the next financial year with its recent foray into structural steel segment.

UNI