Visakhapatnam :
Maa Mahamaya Industries Ltd, the first mini integrated steel plant in Andhra Pradesh set up in Vizianagaram district, is planning to double its present capacity of 1.20 lakh tonnes per annum, according to N. Rath, the president.
He was speaking at a press meet here on Thursday after releasing the new product of the company – the premium double-ribbed TMT steel bar named “Mangal 999″. He said the mini integrated steel plant had been set up at R.G Peta village in the L. Kota mandal of Vizianagaram district in 2006 at a cost of Rs. 270 crore. “We are now launching the premium variant of our main product – Mangal 999 – which provides greater grip and the bond between the concrete and steel is enhanced manifold, if these TMT bars are used. The price variation may be 10-15 per cent for the premium, but we are sure the market will accept it,” he said.
He said the market conditions in the recent past had not been very encouraging, and that was the reason why the expansion had been put on hold but “we will go ahead with it in the near future. We will have to invest Rs. 700-800 crore for the purpose.”
Ashok Kumar Agarwal, Chairman and Managing Director of the company, said there were only two factories in the country – one in the north and the other in Karnataka – producing a similar product and the company would have no problem in selling it. “At present, we are focussing only on AP and Telangana. After expansion, we will branch out to the other southern states and northen markets as well,” he said.
He said the company had tied up with the NMDC for sourcing the iron ore from Chhattisgarh. In response to a question, he said the company had suffered losses of Rs. 40 crore due to Hudhud cyclone and lost 20 days or so of production. “The cyclone was a definite setback this year, but now we are back to normal,” he added.
source: http://www.thehindubusinessline.com / Business Line / Home> Companies / The Hindu Bureau / Visakhapatnam – December 11th, 2014