Eyes turnover of Rs 3k crs in FY 23
Speciality steel manufacturer, Arjas Steel Private Limited has stated that its planned investment of Rs 300 crores for expansion of its flagship Tadipatri, Anantapur facility is set to be complete by May next year.
The company has been actively deploying this capital over a 2-year period which shall see the plant ramp up its capacity while also helping the company become more competitive and efficient. With an initial capacity of 350,000 tonnes the investment will enhance Arjas Steel’s Anantapur facility to 400,000 tonnes capacity.
A leading manufacturer of alloy steel in the country the company primarily manufactures steel bars used in the automotive industry however going forward the plant shall also manufacture coils.
‘In addition, we are expanding our product range of steel bars to 300’ said the company’s Managing Director, Mr Sridhar Krishnamoorthy speaking exclusively to Vizag Industrial Scan.
Arjas steel supplies to nearly all leading auto OEMs in the country i.e. two wheelers, passenger cars, and commercial vehicles.
Arjas Steel operates 2 Steel plants:
1 in Tadipatri in Andhra Pradesh
1 in Mandi Gobindgarh in Punjab
Supplies Steel bars to Auto OEMs in India
The company’s facility in the southern part of Andhra Pradesh is spread across 846 acres and employs a total workforce of 1900 people (both direct & indirect). Though the firm currently focuses on supplying to its domestic clients it is looking to enhance its export basket too. ‘Albeit our current exports are a miniscule at 3-4% we do look at increasing our exports to about 10% from the Anantapur facility over the next 5 years’ informed Mr Krishnamoorthy.
Acquisition in Punjab
The company a year and half ago acquired Modern Steels in Punjab (in Mandi Gobindgarh) and has spent an estimated Rs 130 crores into the plant (including acquisition).
The Punjab plant will have a steel-making capacity of 1.5 lakh tonne and shall strengthen the company’s northern footprint while helping better serve its customers present in that region. With combined facilities the company looks to close FY 23 with increased revenues. ‘We aim of achieving Rs 3000 crores in revenues this fiscal up from Rs 2300 crores we did in the last fiscal (FY 22)’ said the managing director.
Some of the leading auto OEMs Arjas Steel supplies include Hero, Honda, TVS in the 2 wheeler segment to Hyundai, Maruti-Suzuki, Honda in passenger cars to Ashok Leyland, Eicher, Escorts in commercial vehicles and tractors.
Over the years the Anantapur plant has seen a few changes in its ownership and is currently owned by PE firm ADV. Since inception the plant is said to have seen a total investment to the tune of USD 450 million.