Sundergarh plant of Adhunik Metaliks Limited which reached a shut down mode since last 2 months is to start its operation very soon. Liberty house acquired Adhunik Metaliks in bankruptcy proceeding in National Company Law Tribunal (NCLT). Following this Liberty Group has prepared plans for ramping up its operations.
The plant will produce alloy steel bars for automotive, forging, engineering, agri-equipment and also telecom, power, oil and gas industry. As the company ramp up capacity, it will also continue sell TMT bars in domestic market. It also evaluate billets for export mainly to nearby market likes Nepal and Bangladesh.
Adhunik Metaliks has a 450,000 tonne per annum capacity plant at Sundergarh district of Odisha. It has expertise in production of alloy steel round and square bar of a wide range 21 mm to 166 mm diameter. It also makes mild steel billets and blooms.
To run the plant Liberty House plans INR 300-400 crore initial investment which includes starting up, maintenance, working capital and initial capital expenditure.
Liberty House sources said that, “we are currently completing closing activities which involves inter alia, setting up managing committee and managing agency for this interim period and undertaking implementation activities relating de listing, capital reduction and its operational start up plan.”
He said that, “as the Sundergarh plant of Adhunik Metaliks was shut down from last 2 months, our immediate priority is to restart the plant as soon as possible. We are working on it. After we complete the acquisition process, then will rebrand the Adhunik Metaliks.”
On raw material security for Sundergarh plant, he said that, “Iron ore and coal mainly procured from Odisha, imported coal currently comes from South Africa and coke from reputed suppliers.”
“Our first priority is to restart the plant. We are working with all stakeholders and accelerating to complete the necessary activities. Once we start all parts of the plant and bring production to its rightful level, then we will go for expansion.” he added.
Nepal continues to remain largest destination of Indian billet exports – According to data maintained with SteelMint, India billet exports were recorded at 2.78 MnT in CY17. Out of this largest share was of Nepal with 38% followed by Indonesia and Sri Lanka.
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