Saturday, May 31, 2008

Sujana Aqcuires 3 Steel Units In Andhra; Looks For More In South

Hyderabad based Sujana Metals Products Ltd (SMPL) (Yalamanchili S Chowdary) has acquired three steel units for Rs 180 crore in three different transactions. The units acquired include Saritha Steels, Glade Steels and Shree Ganga Steels, and they are located at Visakhapatnam, Hyderabad and Chennai, respectively.

SMPL plans to invest Rs 180 crore for acquisition, expansion and modernization of their capacities. The company will add around 300,000 tonnes per annum(TPA) through acquisition and expansion of these three units.

SMPL is a part of Rs 3,000 crore Sujana Group. The company claims to offer widest range of long steel products in the country. Its clients include Larsen & Turbo, Reliance Industries, DLF, IVR Infrastructure, among others. The company’s capacity after this acquisition and proposed expansion will be 728,000 TPA as compared to 290,000 TPA last year.

Sujana plans to expand capacity to one million by 2010 through organic and inorganic routes. Also it plans to increase its sales to Rs 3,100 crore and profits to Rs 300 crore. The profits for current fiscal year were Rs 50 crore and its sales level for period July 2007 to June 2008 is expected to be Rs 1,400 crore.

SMP’s strategy is to offer a ’single window’ to cater to diverse needs of industry majors. “From a limited range of products in the construction steel segment around this time last year, SMPL today offers an unlimited range of products in structural steel segment(light, medium and heavy).

The other companies in Sujana group include Sujana Universal Industries Ltd, Sujana Projects Ltd and Sujana Towers Ltd. The group has presence in power transmission, telecom towers, construction & structural steel, urban infrastructure development, precision engineering components, domestic appliances and international trade.

Sujana Metal Products had earlier this year acquired a TMT rolling mill in Hyderabad with installed capacity of about 100,000 TPA together and M.S. Ingots making facility of capacity about 50,000 TPA. These units are Handum Industries and Kamini Steels respectively. The company plans to acquire more units across south India.
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