Srikalahasthi to invest Rs. 400 crore in Ductile Pipe plant expansion.

The board of directors of Srikalahasthi Pipes Ltd. has approved a plan to increase the capacity of its Ductile Iron Pipe plant from 3,00,000 tonnes to 5,00,000 tonnes per annum with a total outlay of Rs. 400 crore.

The decision to expand was taken considering the growing demand of Ductile Iron Pipes. The board in its previous meeting had already sanctioned capex of Rs. 145 crore and the balance capex of Rs. 255 crore has now been approved.

To attain 5,00,000 tonnes per annum hot metal production, it is proposed to install additional Sinter Plant, increased furnace blowing system, additional hot blast stove, oxygen enrichment and all auxiliaries along with higher furnace volume.

The new blast furnace is likely to be commissioned in the third quarter of 2020 and the increase in capacity of Ductile Iron Pipe plant by end of March 2021.

GS Rathi, Wholetime Director, Srikalahasti Pipes, said, “The investment required will be met from available funds and internal accruals. And the Ferro Alloys Project is under final stages of execution and as planned the first furnace will be commissioned by September and the second by December 2019.

Rathi said that water is getting high attention from policy makers and the Ministry of Water Resources and Drinking Water & Sanitation have been merged in the Ministry of Jal Shakti in May 2019 itself. This will provide huge opportunities.

Profit rises

The company posted a profit of Rs. 33.37 crore for the quarter ended June 30, 2019 as against against Rs. 17.29 crore in the same quarter of previous year. It logged in total income of Rs. 373.18 crore during the June quarter as against Rs. 336.62 core in the June quarter of the previous fiscal.

The production of Ductile Iron Pipe during the quarter was up at 65,518 tonnes as against 59,555 tonnes in the corresponding quarter.

During the quarter, the company took a planned shutdown of its plant for ten days as part of routine maintenance.

Similar shutdown for 15 days was taken up during the corresponding quarter of last fiscal.

HBL