Secondary steel manufacturer SRMB, does not see any significant rise in steel prices in the next one month, even though its new earthquake resistant TMT bars—SRMB 500+SR, will cost the company about Rs 1,000 more per tonne of steel.
The company produces about 3 lakh tonne of TMT bars per year at its plants located in Durgapur and Paharpur, near Kolkata.
M M Abraham, senior vice president (marketing and distribution), SRMB, said, “We have decided to absorb the entire cost escalation for the next one month, as the market will not accept it. The conversion would mean that the raw material cost going up by almost Rs 1,000 per tonne of steel. From this month onwards, we will only produce earthquake-resistant bars.”
Abraham did not rule out the possibility of prices increasing after one month.
“ This is a revolutionary step taken towards diversification into this sector and will strengthen the company’s presence pan India. Here one can test steel bars at free of cost and get its physical report instantly. Another 10 such units would be ready in next six months time all across eastern India,” he said.
This year, the company has set a sales target of Rs 1,000 crore, against Rs 750 crore last financial year.
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SRMB has also launched its three exclusive orientation centre in Kolkata, Kochi and Siliguri.
“Special treatment of the billets in the manufacturing process and critically controlled post rolling methods provide SRMB 500+ SR TMT bars with higher ductility and enlarged gap between the Yield Strength and Ultimate Tensile Strength. A highly critical balance between the chemistry and the quenching parameters during the manufacturing process lead to the development of the desired properties in these rebars. Carbon Equivalent is maintained at a lower level to ensure good weld-ability. These bars when used in construction in the seismic prone zones possess superior capacity to absorb energy beyond yield limits and thus protect the building from collapsing. Like every other SRMB product SRMB 500+ SR follows stringent quality control during manufacturing process and offers great value for money in addition to long-lasting security of the buildings,” said Abraham.