SEIL eyes Rs 600cr turnover in FY07

Visakhapatnam-based Steel Exchange India Limited (SEIL), which is into steel manufacturing, steel trading and software business, is expecting more than Rs 600-crore turnover during the current financial year.

Speaking to Business Standard, B Suresh Kumar, director of SEIL, said the company's total turnover during the financial year ended March 31, 2006, was up by 38 per cent as compared to the previous year.

During 2005-06, SEIL's turnover touched about Rs 525 crore as compared with Rs 380 crore in the preceding year.

The listed company, which operates a steel melting unit at Ravulapalem in West Godavari district and a steel re-rolling mill at Visakhapatnam, recently completed the expansion works on both the units.

"We had invested about Rs 15 crore in the expansion works. The production capacity of the steel melting unit has now increased to 90,000 tonnes from 60,000 tonnes, and of the re-rolling unit, it is up to 60,000 tonnes from 4,5000 tonnes a year," he said.

The company sees additional production and an enhanced turnover from its manufacturing division this year following completion of expansion works. It currently produces 8 Mw of power at its steel melting unit as cogeneration.

SEIL also has a software unit at the Visakhapatnam special economic zone. However, the turnover of this division has been quite negligible.

"We have separate plans to revive the software unit. We may either go in for a partner to run the software division or convert it into a BPO centre. And if things don't work out, we may even sell off this business," he said, adding that SEIL was planning to take over some secondary steel units in near future.