City-based Steel Exchange India Limited (SEIL), a steel producer and trader, expects to close the current fiscal with a turnover of Rs 650 crore as against Rs 614 crore during the last fiscal, an increase of 6 per cent.
As of December, the company achieved a turnover of Rs 460 crore through steel trading and manufacturing, said B Suresh Kumar, joint managing director, SEIL. Of the targeted turnover, it expects steel trading to account for about 35 per cent.
Suresh Kumar said due to the slowdown, SEIL had stopped steel production at its Ravulapalem unit from last six months. The company has a production capacity of about 100,000 tonne steel at its three units in the state.
Besides, it has deferred work on its proposed integrated steel plant at Kotthavalasa in Vizianagaram district due to sluggish demand for steel products.
SEIL, which acquired a sick steel mill of Gold Star Alloy Limited last year, has already invested about Rs 80 crore in it. Though it has lined up Rs 350 crore to convert this unit into a mini integrated steel mill, Kumar said they would now invest in just starting rolling mill production. “By the end of July, we will invest another Rs 70 crore for commencing production. The remaining work would be taken up after a couple of months,” he added.
