Uttam Galva plans new product line

Uttam Galva Steels, the country's second largest galvanised steel manufacturer, will add a new galvanising line with a capacity of 3,50,000 tonne per annum. This is part of the Rs 350 crore expansion plan that the company has lined up.

"The new line will come on stream within this financial year and the total capacity will increase to 7,00,000 tonne per annum," said Ankit Miglani, director.

As part of the Rs 350 crore expansion, Uttam Galva is also doubling the production of cold rolled steel from existing 5,00,000 tonne per annum to 1 million tonne.

"The economic fundamentals are strong and so is the demand for cold rolled steel and, hence, the company has decided to increase the capacity to cater to this demand," added Miglani.

To facilitate this expansion, Uttam Galva shut one of the cold rolling plants for 45 days. This will have an impact on production and the company's output of cold-rolled steel will come down by 20 per cent in the quarter ending June 2006.

The company is also investing Rs 100 crore to expand capacities in its service centre for steel processing and distribution.

"The centre will focus on steel retailing at industry level and will provide cutting, slitting and steel blanking services. We will focus on just-in time delivery and inventory management as well," said Miglani.

At present, the centre has installed capacity of 5,000 tonne a month. In the first phase of expansion, additional capacity of 25,000 tonne will be added.