Targeting higher exports, the Bhavnagar-based Steelcast Ltd on Friday said it has completed investment of Rs 100 crore, and expanded capacity from 22,000 metric tons (MT) to 30,000 MT since March 2013.
The listed company’s capacity had earlier been enhanced from 10,000 MT to 22,000 MT in the last three years, with the US Railroads approaching it for supply of material. Steelcast makes steel casting for equipment used in, among others, mining and construction industries.
“On our business with the US Railroads, we are facing slowdown, mainly due to design changes in component. We will re-engineer the components and hope to be ready by March 2014,” Chetan Tamboli, Chairman and Managing Director, told
“With this brown-field capacity expansion being over by October 2013, we will be one of the few companies in the world making niche product for mining and construction equipment companies.”
Steelcast is aiming to increase exports from the existing 53% to 65% of its production by March 2015.
He also said the ongoing slowdown in Indian economy had affected Steelcast adversely, with a 30% degrowth in 2013-14. However, 2014-15 is expected to be better. The company may take a call in 2015 for further expansion in Bhavnagar where it has acquired a new parcel of one lakh square meters of land.
In the last two financial years (2011-12 and 2012-13) the company’s turnover increased by 21% from Rs 235 crore to Rs 290 crore while its net profit went up by 40% from Rs 14 crore to Rs 20 crore, he said.