Gautam TMT is renamed Kedhar Groop, plans expansion

Hyderabad: The Hyderabad-based Gautam TMT, also known as Abhishek Steels, has rechristened itself as Kedhar Groop. The company plans to invest Rs 400 crore as part of its expansion over the next two years.

“The investment will help the company move from being in the business of manufacturing TMT bars to become an integrated player in the sector,” Mr Gopaal Agarrwal, Managing Director, Kedhar Groop, said while addressing a press conference here.

As part of the diversification plan, the company has acquired 150 acres near Jadcharla to set up the plant, which is expected to be commissioned by 2010.

“The facility will have two furnaces with a capacity of 500 tonnes a day, two structural mills with a capacity of 400 tonnes a day, one tower division which will use the products of the structural mill and create the required value additions for the transmission lines. This will have a capacity of 200 tonnes a day,” he said.

Also the facility will have a 25 MW power plant, which would use smoke from the sponge iron plant to produce power. “Five sponge iron plants with a capacity of 100 tonnes a day and an induction furnace with 260 tonnes a day capacity will also come up in the plant,” Mr Agarrwal said.

He said that 75 per cent of the total investment will be raised from various banks and the rest through internal accruals.

Once the plant is operational it will take the installed capacity from the current 60,000 tpa (tonnes per annum) to 0.8 million tpa.

“Last year, the turnover of the company was at Rs 60 crore with a net profit of Rs 3 crore. This year we expect it to touch Rs 100 crore,” he said.