Essar Steel India, an integrated steel producer is planning to increase its steel output and has set target of producing 7.43 MnT of crude steel and 7.2 MnT of finished steel by end of FY’20.
The company is having manufacturing facility with an installed capacity of 10 MnT pa; comprising of ore benefaction, pellet making, iron making, steel making and downstream facilities including cold rolling mill, galvanizing, pre-coated facility, steel processing facility, extra wide plate mill and a pipe mill.
During first two months of current fiscal year the company’s crude steel production stood at 1.25 MnT with an increase of 14% as compared to 1.1 MnT in same time frame of previous financial year.
Essar Steel is undergoing insolvency proceedings and has received a proposal of acquisition by Arcelor Mittal.
Meanwhile the company has reported growth in EBITDA by 17% to INR 770 cr which was INR 660 cr in previous fiscal.
Dilip Oomen, Managing Director-shared that “The radical improvement in performance is a result of the concerted effort of the team. The performance when seen in light of subdued demand and sedate steel prices is satisfying.”
Further he added that,right strategies, including margin maximization and streamlining systems and processes, have enabled us to improve both top-line and bottom-line performance.
Thus Essar steel’s long term plan is to increase the capacity from existing 10 MnT to 12-15 MnT in upcoming fiscals.
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