Navin Jindal-led Jindal Steel and Power Ltd. (JSPL) plans to invest about INR 2,000 crore to set up two steel bar mills. The mills with a capacity of around 1.4 MnT each will help the firm to consolidate in the thermo mechanically treated (TMT) steel bar segment.
V.K.Mehta, director of sales and marketing of JSPL, said the mills were being set up at the steelmaker's existing facilities at Angul in Odisha and in Oman. At present, the company produces TMT bars at Patratu in Jharkhand.
“At present, we have a capacity of 1.6 million tonnes. In three years we hope to expand capacity to 4.5 million tonnes by setting up two more bar mills. Each of these units could require an investment of Rs. 900 – 1,000 crore,” said Mr. Mehta.
The company has launched its own retail brand – Jindal Panther – and the expansion will support additional sales through the channel.
“The bar mill in Oman is due to come up in the next 18 months and the one at Angul is likely to come up 27 months,” he added.
Rahul Choudhri, associate vice-president, marketing of JSPL, said the firm planned to expand the number of products offered through the retail channel. JSPL has started with TMT bars which is used in the construction of buildings. Choudhri further said that the company would leverage on the network of 40 distributors and over 1,000 dealers to strengthen its retail sales.
JSPL is also looking to enter into high-value steel product categories and plans to set up head hardening facilities for the railways at its Raigarh unit in Chattisgarh. The project is likely to be completed by January 2014.
Source: Telegraph
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