Kedhar Groop (formerly Gautam TMT), a city-based player in the steel and rolling mills industry, is setting up an integrated steel plant at Jadcherla in Mahabubnagar district of Andhra Pradesh at an investment of Rs 400 crore.
The company plans to commence work on the 150-acre greenfield project in the next two months and expects to start production by 2010, Gopal Agarrwal, proprietor of the family enterprise, told mediapersons here on Friday.
“We plan to pump in 25 per cent of the funds through internal resources and the rest via debt. The financial closure of the project will be completed in a couple of months,” he said, adding that the company had applied for SEZ status for the project.
At the integrated steel plant, Kedhar will be setting up two concast furnaces with a combined capacity of 500 tonne per day, two structural mills with a 400-tonne per day capacity, a tower division having a capacity of 300 tonne per day, five sponge iron plants, which will produce 100 tonne each per day, and two induction furnaces of 130 tonne each per day, which will be the raw material for the company’s existing TMT plant.
Agarrwal said the company would also set up a 25Mw power unit at the integrated plant to cater to its internal requirements. “Once the integrated plant is completed, the company’s production capacity will touch 800,000 tonne per year, as against the present 60,000 tonne,” he said.
The 25-year-old company posted a net profit of Rs 3 crore on revenues of Rs 60 crore last year. It expects to close the current financial year with Rs 100 crore.
