Adhunik Metaliks to invest Rs 450 cr in Rourkela plant

Adhunik Metaliks has decided to invest Rs 450 crore to manufacture high value-added auto grade steels at its manufacturing plant at Rourkela.

"Our plan is to set up an integrated steel plant with complete backward and forward linkages. We will be finally involved right from iron ore and coal mining to manufacturing a range of steel products, including auto grade steel" said Manoj Agarwal, director, Adhunik Metaliks.

Further on, he added that the company had planned to implement the Adhunik Metaliks project in three phases - the first phase is onstream, the second phase expansion would be implemented shortly. The entire project is expected to be completed by 2008-09.

Earlier, the company had announced an expansion plan with a capital outlay of Rs 250 crore.

The expansion would be funded through a combination of debt and contribution from the promoters. State Bank of India, the leader of the consortium of banks, has advanced Rs 138 crore.

The company produces high quality sponge iron, pig iron, special grade high carbon and low carbon steel billets and different grades of alloy steel billets.

Adhunik is expecting to post a gross sales of Rs 446.68 crore during the current fiscal year and a net profit of Rs 48.16 crore. As per the financial projections made by the company to its bankers and other financial institutions, it is hopeful of posting gross sales of Rs 1,083 crore by 2007-08.