Maharashtra Seamless to invest up to Rs2,000 crore in new steel plant
04 Feb 2008
Mumbai: Seamless steel pipes maker Maharashtra Seamless Ltd (MSL) will invest Rs1,500-2,000 to set up a new plant in Maharashtra as part of its backward integration plan, reports quoting a group official said.
MSL plans to increase pipes capacity to 500,000 tonnes per annum from the current 350,000 tonnes through de-bottlenecking and addition of balancing equipment, the report quoting DP Jindal official Anil Jain said.
The company will relocate a seamless pipes plant from Romania, acquired in December 2007, at the same site as the new plant.
The report said since steel demand and prices are going up, the company is increasing pipes capacity in a significant manner.
The company is also planning to have own raw material sources so that there is less pressure on margins, the reports said.
The expansion would be funded through equity, internal accruals and debt, the report said, adding the company is debt-free.
Steel prices in India have gone up by 7-8 per cent last week.
The company's net profit fell 15 per cent in the December quarter to 511.6 million rupees due to high input cost.
