Essar Steel plans to ramp up its capacity utilization in current fiscal and raised profit to INR 6.48 bn in FY15.
Essar Steel, which has a total capacity of producing 10 MnT of liquid steel, has targeted to ramp up its capacity utilization to 80% in FY16, from 50% at the end of FY15. The utilization has so far been constrained owing to delay in completion of the plant and unavailability of gas.
The company’s Executive Vice Chairman, Firdose Vandrevala stated, “The company targets on value added products, increasing production, introducing new products and improving profitability in order to ensure sustainable operations of the company.”
In addition, the group’s CEO, Prashant Ruia mentioned that the company, which operates 6.8 MnT gas-based steel making facility, will move towards coal based production of steel from gas based production.
He further added, “We are the largest gas based steel making capacity in the world. However, we are not producing at that level. We don’t see any significant rise in gas availability in India soon.”
Essar Gains Profit of INR 6.48 Billion in FY15
Ruias-promoted Essar Steel has gained a net profit of INR 6.48 bn in the last fiscal FY15. The major factors for such hike in profit are better operating margins, consolidation and higher demand for its value added steel products. Gross revenue of the company has moved up by 19.6% to INR 171.62 bn in the fiscal against INR 143.48 bn in FY14, as per sources.
Now, the company is planning to monetize Vizag slurry pipeline and coke oven for around INR 70 bn in FY16.
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