HomeSteel & CommoditiesAP based Arjas Steel to supply to railways & metro

AP based Arjas Steel to supply to railways & metro

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Undertakes plant expansion at both AP & Punjab plants

A leading producer of special steel (alloy steel) long products catering primarily to the automotive sector, Arjas steel has added a new vertical to its kitty i.e. to supply to the Indian railways.

As part of its market diversification efforts, Andhra Pradesh headquartered Arjas Steel will now also be serving the Railway and Metro market segments along with the energy sector which it currently serves.

‘One of the significant developments in 2023-24 has been our qualification and supplies to the Railway sector’ said Arjas Steel’s managing director Mr Sridhar Krishnamoorthy speaking exclusively to Vizag Industrial Scan.

Arjas Steel has 2 manufacturing locations one in Andhra Pradesh and the other in Punjab. The firm has been undertaking expansion at both of its plants and once complete its total production capacity will go up to 520,000 tonnes from the current 400,000 tons per year.

‘We are in the process of expanding our production volumes, product range while also debottleneck processes to improve offering to our customers in order to increase competitiveness of steel’ said the managing director, Arjas steel.

Plant in Andhra Pradesh

Located, in Tadipatri Anantapur District of Andhra Pradesh the plant is situated on an 850 acre site wherein it uses iron ore and coking coal as raw materials, with a fully integrated manufacturing process that culminates in finished products that are inspected and sold. 

‘This plant has well established itself over a period as a leading special steel supplier in the country renowned for its service and reliability amongst the wide customer base within and outside the country’ said Mr Krishnamoorthy.

Special steel also finds applications in infrastructure, machinery, Defence, Aerospace and other sectors as steel with particular characteristics are needed and need to be made to match those needs.

‘Our expansion of the Tadipatri plant in AP will be completed by September this year’ said the managing director.

Plant in Punjab

In Punjab the company operates in the name of Arjas Modern Steel located in the city of MandiGobindgarh, in the district of Fatehgarh Sahib.

Here the integrated process involves the use of scrap and sponge iron as raw materials in two Electric Arc Furnaces. 

The company recycles the scrap generated within the plant as well as scrap from other industries such as Automotive, Machine building etc. 

This was a sick unit on the verge of closure which was taken over by Arjas in January 2022 and turned around into a self-sustaining unit which is growing quickly.

The current capacity of the Punjab plant is said to be around 80k tonnes annually which the management says will go up to 120,000 tonnes by March next year. 

As per the company’s managing director the future expansion and development earmarked for both the units is going to be in the area of steel meant for high end applications in Defence, Aerospace etc. which will contribute towards the cause of ATMNIRBHAR BHARAT by substituting imports.

Arjas Steel employs and engages with contractors with a total workforce of 2500 employees in both locations. 

Exports Play

FY24 also saw Arjas Steel’s improvement in exports of alloy steel bars to Europe and Asia Pacific markets. Albeit the volumes are small right now the company expects this to become 10% of total sales in near term. 

Revenues

On a consolidated basis Arjas Steel recorded revenues (both plants) of Rs 2845 crores in FY 23.

It however expects to see a 20% growth in their top line for the next fiscal year i.e. FY 25 courtesy capacity expansion and product enrichment. The company was rated A with a stable outlook by CRISIL and India Ratings.

Focus on Safety

Recently in March 2024 Arjas Steel was awarded by CII “GOLD” Award, for the Industrial Safety Leadership Award (Category-9).

‘Arjas Steel places industrial safety as its highest priority and value and best practices are driven down on a daily basis in all employees’ actions, day after day’ said Mr Krishnamoorthy.

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