With swanky steel buildings becoming a common sight in metros, India's first structural steel plant, a 50:50 joint venture between JSW Steel and Severfield Rowen UK, is hoping to pioneer the structural steel market in India. JSW Severfield Structures' new specialty steel plant in Torangalu, about 30 km from Bellary, has started commercial production of fabricated steel with initial capacity of 35,000 tonnes per annum.
The company is hoping to expand capacity to 90,000 tonnes by 2012 and set up three more plants in Delhi, Mumbai and West Bengal with a Rs. 200-300 crore investment per unit.
The company says it has a Rs. 80 crore orderbook with active inquiries for around Rs. 500 cr worth of projects.
"We expect to have an annual turnover of around Rs. 1000 crore from this venture at a full capacity utilization of 35,000 tonnes," said Sajjan Jindal, VC and MD of JSW Steel.
JSSL says steel buildings constitute less than 1 per cent of the Indian market as compared to 50-60 per cent in the developed world and hence the growth opportunity is large.
Also construction time taken is reduced by half and site labour needed is 80 per cent lower as compared to regular construction. But given that India is such a cost sensitive market how do the costs compare?
"In the UK it is 110 per sq meter for steel versus 145 for concrete. We are in the process of doing an independent assessment here in India," said Tom Haughey CEO of Severfield.
With the first site starting commercial operations, JSSL plans to have at least 4 more plants across India. How much capacity and by when will ultimately depend on the kind of response this venture gets from the market.
Read more at: http://profit.ndtv.com/news/show/jsw-severfield-steel-plant-begins-operations-in-karnataka-122688?cp
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