Bhushan to set up Rs 100-cr unit

The company has purchased land in Ludhiana for the manufacturing unit.

Bhushan Power and Steel is mulling an investment of over Rs 100 crore at its new facility in Ludhiana.

The company purchased the premises of a sick unit in industrial area of Ludhiana to put up a manufacturing unit to cater to the industries in and around Ludhiana. The company expects to commission the Ludhiana plant in one year.

The company is also contemplating of putting up a unit of cold drawn welded tube (CDW) at Manesar. Bhushan Power and Steel has a warehouse in Manesar and is interested to add a manufacturing unit in the adjacent area to make CDW tube for the automobile units located around Delhi.

The company has a warehouse in 3 acre and needs another 4-5 acre to set up a manufacturing unit. It would need a capital outlay of about Rs 150 crore for a capacity of 50,000 tonnes per annum at Manesar.

An official of the company said they had applied to the HSIIDC (Haryana State Infrastructure and Industrial Development Corporation) for more land.

The Ludhiana unit would be Bhushan's second plant in Punjab. It already has one in Derabassi. The company also has five plants in Chandigarh industrial area.

The new plant at Ludhiana, spread in 7.8 acre, would have a capacity of 120,000 tonne.

According to sources, the company was planning a plant in Punjab as it had an access to cheap raw material sourced from its plants in Orissa. Hot rolled coils and wider cold rolled coils would be used to manufacture components for industries, including cycle industry, located in Ludhiana and automobile units located in the region.

The 4 per cent entry tax in Punjab would decrease the profits of the unit but the in-house availability of raw material would offset the entry tax, sources said.