STL to focus on product diversification to improve bottomline

Hyderabad, Jun 20 (UNI) Sujana Towers Limited (STL), a part of the well-diversified Rs 3,000 crore Sujana Group of Companies, has embarked on an ambitious plan to treble its turnover by 2009-10 through capacity expansion, product diversification and augmentation of EPC capabilities and strategic tie-ups.

In a release here today, Group Chairman Y S Chowdary said STL's new facility at Gummidipundi in Tamil Nadu, being set up with a capacity of 1,00,000 tonnes per annum (TPA) at a capital expenditure of Rs 150 crore, was expected to be commissioned in September this year. ''This will augment the company's overall capacity by 80 per cent.'' The Chennai unit was a flexible manufacturing facility to produce diversified products such as galvanised towers and tower parts for the power transmission and telecom sectors, mono poles (high-mast light poles), railway electrification structures, highway crash guards, galvanised trays and industrial gratings and other galvanised structures.

Sujana Group of Industries Group Director V S R Murthy said the company also had plans to make a foray into the cables and conductors segment through acquisition of units in field. ''We have plans to export cables and aerial bundled cables to the Middle East, Asia and Africa besides catering to the domestic market,'' he said.

As part of its strategy to emerge as the premier provider of products and value-added services in the telecom and power transmission infrastructure sectors not only in India but overseas also, STL had acquired 51 per cent in an African Telecom Infrastructure company -- Telesuprecon Limited, based in Mauritius, to reach out to the markets in East and Central Africa. The company was also exploring the possibilities of similar strategic tie-ups in the Middle East, especially Gulf Cooperation Council states.

STL was formed through de-merger of tower division of Sujana Metal Products Limited for a better business focus and concentration on tower business. The company completed capacity expansion of the galvanised tower facility at Hyderabad to 128,125 TPA in two phases last year. With Chennai facility catering to South India and export market and Hyderabad unit supplying to Western and Central India, the company's installed capacity would reach 228,125 TPA with the commissioning of Chennai plant.

STL expected a turnover of Rs 590-600 crore in 2007-2008, ending June 30 this year, with profit after tax to be around Rs 54 crore. It was targetting Rs 900 crore topline through inorganic growth by June next year.

UNI DB VA SJ 1735