Uttam Galva Steels bags $170-million order

06 March 2006

Mumbai: Mumbai-based Uttam Galva Steels (UGSL), the country's second largest galvanised steel manufacturer, has bagged a $170-million order from global steel and raw material distributor Stemcor to supply cold rolled, galvanised and colour coated steel.

The deal is for the supply of steel over three years, and the Indian company will fix the price of its products every quarter, factoring market dynamics during the tenure of the agreement. The annual volume of Supply to Stemcor will be approximately 10-12 per cent of the yearly turnover (as of March 2005) of Uttam Galva Steels.

UGSL had closed FY 2005 with a net profit of Rs95 crore on gross sales of Rs215 crore.

According to Ankit Miglani, director, UGSL, "The order signals, in some ways, the bullish undercurrents in the global steel markets."

Business Today has ranked UGSL as India's fourth fastest growing company and 71st most valuable private sector company (issues dated March 13, 2005 and December 4, 2005

Last April it had commissioned it's a state-of-the-art 6-HI reversible cold rolling mill, which is part of its Rs350-crore expansion plan, to manufacture import substitute-grade finished cold rolled sheets for the automobile and white goods industry. In the auto sector it supplies steel to Bajaj Auto, Bajaj Tempo, M&M, Kirloskar, Crompton, L&T.