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Arjas Steel to Double Capacity to 600KT per Annum

Steel News - Published on Tue, 22 Oct 2019

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Anantapur based Arjas Steel Private Limited, formerly known as Gerdau Steel India Private Limited, is planning to invest over INR 200 crore on expansion of its plant as well as planning to add a Research & Development. MD Mr Sridhar Krishnamoorthy said “We have an installed capacity of three lakh tonnes of special steel per annum, and the current manufacturing facility has reached its full capacity. So, we are looking at investing over INR 200 crore on new equipment and capacity expansion to make it a six lakh tonne unit in four years.”

He said “Besides capacity expansion, the company is also planning to set up its own R&D center to better customize its products to suit the market requirements. We are looking at the requirements of electric vehicles, which have lot of applicability and demand in the market. While having a dedicated in-house facility here, we are also tying up with IITs and other premier institutions to meet our R&D requirements.”

He added that the required investment would be sourced through internal accruals

Private equity firm, ADV Partners, had acquired Arjas Steel from the Brazilian entity, Gerdau Steel, in the early part of this year for about USD 120 million. The present turnover of Arjas is about INR 1,450 crore and EBITDA margins stand at 15%.

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Posted By : Rabi Wangkhem on Tue, 22 Oct 2019
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