Tata Metaliks bets big on foundries at Redi

Firm hopes to become world's largest pig iron producer

Tata Metaliks, after the takeover of Usha Ispat, is all set to become the world's leading producer of foundry grade pig iron, once all its three foundries at Redi on the Goa-Maharashtra border start operations.

The company bought Usha Ispat plant from IDBI at Rs 115 crore, as Usha Ispat has defaulted on a loan of Rs 550 crore. With this purchase, Tata Metaliks acquired 300 acre of land along with plant and machinery from the IDBI.

The company's another plant located in Kharagpur produces over 300 lakh tonne of pig iron annually, and once all the three blast foundries becomes operational at Redi, the company would be producing 650 lakh tonne of best quality pig iron.

Harsh Jha, managing director of Tata Metaliks, said that from the export perspective, the Redi plant is strategically located considering freight charges.

"Our main aim was to target the West Asian countries such as Saudi Arabia, Dubai, Bahrain, Turkey and western parts of Europe. Besides it will also cater to the needs Gujarat, Maharashtra, Goa, Karnataka and Kerala," he added.

The Redi plant is expected to produce 3 lakh tonne of pig iron during the next financial year.

"If the Goa plant produces as much as its Kharagpur counterpart, then we would become the largest producer of founder grade pig iron in the world," Jha said.

He further said the Redi plant has given the company a toehold in the western region. "We have the Kharagpur plant in West Bengal, which serves the needs of the eastern region," Jha said.

Tata's have a share of 12 per cent at present in the domestic market and after the Redi plant becomes operational, its share will rise to 25 per cent.

As per their philosophy, the Tata's have assured the locals that they would develop the Redi village, once the plant runs into profits.