KJS Ahluwalia, an Odisha based company escalates its Sponge production by outright purchase of Sambalpur based, Viraj Steel & Energy Ltd.

KJS Ahluwalia, one of the largest merchant Iron ore producers of Odisha with an annual production of over 5 MnT pa is expeditiously looking to expand and strengthen its Sponge iron capacity across India. With an installed Sponge Iron capacity of around 0.2 MnT pa in Odisha and M.P, miner has recently taken over another Sambalpur (Odisha) based Sponge unit.

According to sources, company has recently bought Viraj Steel & Energy Ltd (VSEL), a Sponge iron plant based in Gurupali, Pandaloi, Sambalpur (Odisha). VSEL has capacity of producing 0.2 MnT Sponge iron (350 TPD * 2) along with 16 MW power plant.

The plant was closed for almost 2 years and was owned by Mr RD Rai, a Delhi based businessman. Now, it has become a unit of KJS Division.

In the coming days, KJS is also planning to establish a Pellet plant in Barbil with installed capacity of 1.2 MnT pa. Sources close to this matter say that with state government focusing on value addition of minerals, company has to go for acquisitions and expansions.

KJS Ahluwalia will become one of the largest Coal based Sponge producer in India with an installed capacity of around 0.4 MnT by FY15.