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Sujana Metal Products seized for loan recovery - Report

Steel News - Published on Thu, 14 Mar 2019

Image Source: SteelGuru
The Hindu reported that a steel unit of a Sujana Group company in Nalgonda district of Telangana has been seized as part of the loan recovery process initiated by banks. One of the 11 production facilities the company, Splendid Metal Products Ltd (formerly Sujana Metal Products Ltd) has in Telangana, Andhra Pradesh and Tamil Nadu, the unit is located in Chikatigudem, Kethepally mandal of the district. The action has cast a shadow on the livelihood of 130 persons employed at the unit.

According to sources, the action pertains to the recovery of around INR 1,300 crore loan by a consortium of banks. The unit, which is located about 130 km from Hyderabad on National Highway 65, was issued notices about three weeks ago and March 9 was set as the last date for responding to them. As of March 31, 2018, secured loans issued by banks total INR 1,227 crore.

Figuring in the list of banks are Andhra Bank, Indian Bank, Indian Overseas Bank, Lakshmi Vilas Bank, Oriental Bank of Commerce, and Punjab National Bank.

A listed company, Splendid Metal Products was incorporated in May 1988 as Sujana Steel Re-rolling Industries Pvt Ltd. In March 1992, the name was changed to Sujana Steels Pvt Ltd and in April of the same year the company was converted into a public limited company. In November 2001, the company changed its name as Sujana Metal Products Ltd, which was changed to Splendid Metal Products Ltd in November 2016.

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Posted By : Rabi Wangkhem on Thu, 14 Mar 2019
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