Tata Metaliks sales up on Usha Ispat unit buyout

Tata Metaliks Ltd reported sharply higher pig iron sales in both value and volume terms following its recent buyout of Usha Ispat unit at Redi.

The existing operations at Kharagpur and the full commissioning of the Redi plant would make Tata Metaliks the largest foundry grade pig iron manufacturer in the world.

The Redi unit would add approximately Rs 350-400 crore to the topline of the company in one year of operations.

The company produced 80,341 tonne hot metal in October-December (third quarter), compared with 78,771 tonne in the July-September quarter this financial year "" an increase of 1.99 per cent.

During the quarter, sales soared to Rs 130.24 crore (Rs 82.92 crore in the year ago quarter), an increase of 56.07 per cent. Meanwhile, volume wise net sales rose to 67,028 tonne from 42,524 tonne in the previous quarter.

The company recorded gross turnover of Rs 343.27 crore in the nine-month period ending December 31.

Tata Metaliks had recently acquired the movable and immovable assets of Usha Ispat's Redi unit (Maharashtra). It was declared the highest bidder at the bids invited and finalised by the Stressed Assets Stabilisation Fund (SASF).

With the increased production capacity from the three furnaces of Usha Ispat, Tata Metaliks has enhanced its annual production capacity to 650,000 tonne of pig iron.

Tata Metaliks bought the Redi unit for Rs 115 crore. The unit is spread over approximately 160 acre and has an installed capacity to produce 300,000 tonne per annum of pig iron, using three MECOM MEMAG design blast furnaces.