The Hindu : Business : RINL mulls big expansion

Online edition of India's National Newspaper
Tuesday, Jun 22, 2004

Business

Business

RINL mulls big expansion

By Our Special Correspondent

CHENNAI, JUNE 21. The Rashtriya Ispat Nigam Ltd., better known as Vizag Steel Plant, has added a new credit in a different parameter in the recent past. Stating this at a press conference here on June 20, B. K. Panda, Chairman-cum-Managing Director, Rashtriya Ispat Nigam Ltd., said the future for the Indian steel industry in general and the Vizag Steel Plant in particular was extremely bright. The company was considering a major expansion plan which if implemented after the Government approval would increase the capacity to five million tonnes.

Already in the past three years Vizag Steel by relying on new processes and technologies has performed beyond rated capacities. Last year the company produced 4.05 million tonnes of hot metal, 3.51 million tonnes of liquid steel and 3.17 million tonnes of salable steel, thereby increasing the installed capacity by a wide margin. The company plans to focus on widening its products and take-up in a big way production of specialised steel, which has a higher value addition. The ultimate aim of Vizag Steel is to produce 50 per cent of its saleable steel production as specialised steel catering to the increasing demand in that segment.

During 2003-04, Vizag Steel Plant sold 2.82 million tonnes in the domestic market and 3.8 lakh tones in the export market. Of the total sales of Rs. 6,174 crores, Rs. 5,406 crores came from domestic sales and Rs. 768 crores from exports. Mr. Panda said the company had successfully created distinctive brand image and good customer relationship management. According to the CMD, Vizag TMT, the brand name of the company, commands the highest premium in the market. The company has had a turbulent past and it staged a successful turnaround to become a zero debt company. Among the rewards received by the company are the National Energy Conservation Award and the SCOPE Turnaround award and the Prime Minister's Trophy for being the best integrated steel plant in the country.

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