 "Good Luck Steel inaugurates auto tube manufacturing plant in UP")
Good Luck Steel Tubes Limited (GLST), a manufacturer of steel tubes (for agriculture and automobile sectors), alloy steel flanges, transmission line towers etc, has inaugurated its second auto tube manufacturing plant at Sikandrabad, Bulandshahar (Uttar Pradesh), on November 15, 2014. With commissioning of the second plant, built with an investment of around Rs 100 crore, the company has doubled its production capacity from 30,000 metric tonne (MT) to 60,000 MT.
In 2014, Good Luck Steel Tubes had clocked a turnover of Rs 1077 crore with an EPS of Rs 9.46. In order to tap the emerging opportunities arising because of the buoyancy in economy, the company has ramped up the manufacturing capacity of high yielding verticals such as auto tubes, structures and forging. In FY2015, when the plant is scheduled to go full stream, it will add up to top line by Rs 200 crore and & bottom line suitably.
Thick walled precision tubes, an alternative to seamless pipe, offers excellent market scope and realisation. Besides the domestic market, GLST is exporting maximum production to USA, Europe & Austria. The company is an approved supplier of to Indian automobile majors like Tata, Gabriel, Mahindra & Mahindra, Endurance, Munjal Showa etc, and globally to Voestalpine Rotec, Bourgi USA and many others. The product is in high demand in the American market and the production of the new plant is likely to be contracted by USA buyers alone, likely to be used in four-wheelers such as BMW, Audi, Volkswagen, Toyota etc.
In the second phase of business expansion, GLST intends to do a capital expenditure (capex) of Rs 50 crore for ramping up the capacity of structure vertical, ie towers for PGCIL, NTPC through BHEL & Siemens; heavy engineering structure for boiler manufacturers such as ISFEC, Thermax; bag house and filtration system for multinational companies like Boldrocchi Ecologia; structures for infra projects such as DMRC through L&T-SUCG; and the bogie structures for Indian Railways.
In the solar energy vertical, the company supplies support structure for solar panels. In FY 2016, company plans to make a foray into forging vertical. Government’s ‘Make in India’ drive offers enormous business opportunities to Indian forgers. Relaxed FDI norms & increased privatisation in reserved sector such as defence also offers immense business potential.
According to AIFI (Association of Indian Forging Industry) forecast, the global forging industry will grow at CAGR of 9.73% over the period of 2014-2018. As per the trends available, global automotive OEMs are outsourcing components from countries like India that offer low costs. Keeping this in consideration, the company plans to do a capex of Rs 150 crore to modernise current plant and expand capacity with latest technology. This will enable GLST to supply to global giants like Toshiba, Alstom and ONGC etc, for their high range products.
Auto forging will be a new addition in Good Luck’s forging operations. As per AIFI estimate, the Indian auto industry will touch the $ 30-40 billion mark by 2015 and this growth is expected to be led by exports which will account for $ 20-25 billion. The commercial vehicle segment is contributing 70% revenue.
In 2014, Good Luck Steel Tubes had clocked a turnover of Rs 1077 crore with an EPS of Rs 9.46. In order to tap the emerging opportunities arising because of the buoyancy in economy, the company has ramped up the manufacturing capacity of high yielding verticals such as auto tubes, structures and forging. In FY2015, when the plant is scheduled to go full stream, it will add up to top line by Rs 200 crore and & bottom line suitably.
Thick walled precision tubes, an alternative to seamless pipe, offers excellent market scope and realisation. Besides the domestic market, GLST is exporting maximum production to USA, Europe & Austria. The company is an approved supplier of to Indian automobile majors like Tata, Gabriel, Mahindra & Mahindra, Endurance, Munjal Showa etc, and globally to Voestalpine Rotec, Bourgi USA and many others. The product is in high demand in the American market and the production of the new plant is likely to be contracted by USA buyers alone, likely to be used in four-wheelers such as BMW, Audi, Volkswagen, Toyota etc.
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In the second phase of business expansion, GLST intends to do a capital expenditure (capex) of Rs 50 crore for ramping up the capacity of structure vertical, ie towers for PGCIL, NTPC through BHEL & Siemens; heavy engineering structure for boiler manufacturers such as ISFEC, Thermax; bag house and filtration system for multinational companies like Boldrocchi Ecologia; structures for infra projects such as DMRC through L&T-SUCG; and the bogie structures for Indian Railways.
In the solar energy vertical, the company supplies support structure for solar panels. In FY 2016, company plans to make a foray into forging vertical. Government’s ‘Make in India’ drive offers enormous business opportunities to Indian forgers. Relaxed FDI norms & increased privatisation in reserved sector such as defence also offers immense business potential.
According to AIFI (Association of Indian Forging Industry) forecast, the global forging industry will grow at CAGR of 9.73% over the period of 2014-2018. As per the trends available, global automotive OEMs are outsourcing components from countries like India that offer low costs. Keeping this in consideration, the company plans to do a capex of Rs 150 crore to modernise current plant and expand capacity with latest technology. This will enable GLST to supply to global giants like Toshiba, Alstom and ONGC etc, for their high range products.
Auto forging will be a new addition in Good Luck’s forging operations. As per AIFI estimate, the Indian auto industry will touch the $ 30-40 billion mark by 2015 and this growth is expected to be led by exports which will account for $ 20-25 billion. The commercial vehicle segment is contributing 70% revenue.