Bhuwalka Steel to relocate Hoskote plant

Mumbai: With the real estate prices on the rise across the country, BSE-listed Bhuwalka Steel Industries Ltd (BSIL) has decided to relocate its Hoskote plant in Bangalore and develop the four lakh square feet property into a commercial complex.

The company has entered into 40:60 joint venture with Soul Space Realty Ltd, a group company of Delhi-based B.L. Kashup & Sons Ltd.

“Once the Rs 200-crore development of the property is complete we will have 13 lakh sq feet (build up) saleable area, of which we will own 40 per cent (about 5.25 lakh sq ft) share. We expect to receive Rs 15 crore as rental per annum,” said Mr Suresh Kumar Bhuwalka, Managing Director, BSIL. The company acquired the property in 1981 and will now scout for a land in the Kolar industrial area.

“Our property is about 14-15 km away from Bangalore City, where quality space has become scarce. We don’t plan to sell theHoskote space outright or give it on lease,” said Mr P.K. Chamaria, Vice-President, BSIL.

The company, which produces steel bars and structured steel products such as tower steel and special angles, will increase its capacity from 1.2 lakh tonnes to 2.04 lt by end of fiscal 2008 with expansion at Wada near Bhiwandi in Maharashtra going on stream.

The company has three mills at Wada and will add another unit with an investment of Rs 30 crore to increase its tower steel capacity to one lt.

The steel towers are used mainly by power sector and telecom companies.

“The demand for steel towers and angles are good as about 2,500 mega watt of new power generation is being planned across the country. Both the realty and steel capacity expansion will add about Rs 20 crore to our bottomline,” said Mr Bhuwalka.