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Good Luck Steel Tubes is eyeing a turnover of Rs 1,800 crore by 2017-18 and plans to invest Rs 200 crore in the next three years towards setting up a new forging facility and enhancing capacity of its structural division.
"Having consolidated our base, we are now looking at the next round of growth. We have just commissioned a new facility at Secundrabad in Uttar Pradesh for manufacturing auto tubes which doubles our capacity to 60,000 tonnes per annum," its CEO Ram Agarwal said.
The company now plans to invest Rs 200 crore spanning over next three years for enhancing the capacity of its structural division and forging materials.
The BSE-listed company, which is into manufacturing of transmission towers, pipes for agricultural use, solar panel structures, auto tubes and forging materials, has six plants in Uttar Pradesh. It had clocked Rs 1,077 crore turnover in the last fiscal.
Agarwal said work on two greenfield plants would start next year and both would commence production in a year's time.
Post-expansion, forging division is expected to double its contribution to Rs 400 crore to the projected turnover of Rs 1,800 crore. Turnover from the structural division would also double to Rs 200 crore.
The company, which is now sitting on around Rs 160 crore reserves and surplus, plans to fund the proposed expansion with a 2:1 debt-equity ratio. It would raise loans through external commercial borrowing (ECB).
