Diversified business entity Surya Group today said that it will set up a new steel pipe plant, with an expected investment of Rs 50-60 crore, in Karnataka by the end of this year.
This project is in sync with the company's plans to attain sales to the tune of Rs 3,500 crore from its steel business by 2012.
“We have decided to set up a steel pipe facility in Karnataka, which may involve a capital infusion of Rs 50 to 60 crore,” Surya Roshni executive director Utkarsh Dwivedi today told PTI, adding that the plant's location is expected to be finalised by next month.
“The main objective behind having a plant in Karnataka is to consolidate our southern markets, such as Andhra Pradesh, Chennai and Bangalore, where we have a strong presence in the steel pipe business,” he said.
The new plant would be the company’s fourth steel facility. Post-expansion, the total capacity of its steel pipe business is expected to touch eight lakh tonnes per annum.
“The Karnataka plant will have a production capacity of 1 lakh tonnes per annum,” he said.
Surya Group currently has steel pipe facilities in Bhuj (Gujarat), Gwalior (Madhya Pradesh) and Bahadurgarh (Haryana), with an annual manufacturing capacity of seven lakh tonnes. The company manufactures GI and ERW pipes for various sectors, including infrastructure, real estate and the oil and gas industry.
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