Adhunik flags off Rourkela plant

The Kolkata based Adhunik Metaliks, a leading producer of automotive and special alloy steel, has commissioned its state of art rolling mill at its steel facility at Kuarmunda near Rourkela.

The rolling will churn out a wide range of rolled products which earlier had to be outsourced from third party rolling mills.

The installation of the rolling mill is in line with the second phase of expansion of the company's Orissa project.

The rolling mill, the company claimed, will complete a vital link in the entire production value chain.

It will enable the company graduate from a seller of intermediate product to finished steel.

With in-house capability to produce high quality and value added steel, Adhunik Metaliks will now be able to cater to the very discerning and quality conscious auto component and tier I customers from the automobile industry, a company release said.

The rolling mill was inaugurated by the managing director of Rourkela steel plant B N Singh.

Adhunik Metaliks has recently acquired 75 per cent stake in V Cube forge (India) Ltd, which manufactures forgings for the auto and engineering industries.

The acquisition fits into the company's future business model and is a major forward integration move, said the sources.

In the quarter ended September 30, 2007, the company has reported gross sales of Rs 259.16 crore as compared to Rs 195.03 crore in the comparable quarter of 2006-07.

Net sales for the quarter grew by 36 per cent to Rs 240.43 crore from Rs 176.38 crore in the corresponding quarter last fiscal year.

The profit before interest, depreciation and tax for the quarter under review increased to Rs 39.59 crore from Rs 32.58 crore, an increase of over 21 per cent and net profit (PAT) rose marginally to Rs 20.58 crore from Rs 20.20 crore.