Arsha Ceramics setting up Rs 22cr refractory plant

Hyderabad-based Arsha Ceramics Private Limited is setting up a special quality refractory manufacturing unit at Venkatapuram near Visakhapatnam with an investment of about Rs 22 crore.

The company has acquired 15 acres of land and started the construction work. It expects to complete phase-I of the project and commence production by the end of August.

"While the promoters' equity in this project would be around 25 per cent, the remaining would be borrowed from financial institutions. Some financial institutions have already come forward to finance the project," Arsha Ceramic president R V S Raju told Business Standard.

"The plant would have a capacity to manufacture 22,500 tonnes of refractory bricks a year, and in the first phase, the production capacity would be around 15,000 tonnes," Raju said, adding, "the factory was completely designed with indigenous technology but we are going to import some raw material from China."

Refractory bricks are used in steel, aluminum, zinc and other furnaces for lining purposes.

"India currently produces about 38 million tonnes of steel. According to the new steel policy, steel production would go up to 100 million tonnes within five-six years, while the consumption of refractories would be doubled. Hence, there won't be any problem in marketing our products. In fact, we have already started negotiations with Visakhapatnam Steel and other refractory users," Raju said.

The company expects to garner a turnover of around Rs 65 crore once the plant achieves the 22,500-tonne a year capacity.