The Hindu : Business : Bhushan's galvanized steel mill on stream

Online edition of India's National Newspaper
Thursday, Dec 23, 2004

Business

Business

Bhushan's galvanized steel mill on stream

By Our Staff Correspondent

MUMBAI, DEC. 22. Bhushan Steel & Strips, a leading cold rolled steels manufacturer with an installed capacity of nearly one million tonnes, has successfully commissioned the largest pre-painted galvanized steel line at Khapoli, Maharashtra.

The 1.20 lakh tonnes per annum facility has been imported from GFG, U.S., pioneers in colour coating lines worldwide. For the first time, the facility uses the latest reverse roller coating technology and has a unique indirect re-injection feature.

Of the one million tonne CR steel manufactured by the company, nearly 3.50 lakh tonnes is processed to make the widest flat product to be sold to OEM (Original Equipment Manufacturers) customers in the automobile and white goods industries and over 4.50 lakh tonnes is converted into galvanized plain and corrugated sheets.

Of this, now the company would be adding further value to convert nearly 1.20 lakh tonnes into pre-painted galvanized material.

Pre-painted galvanized steel fetches an additional Rs. 10,000 a tonne over the plain galvanized steel. The material fetches a high price globally as it is used in manufacture of high value white goods and as building material, particularly roofings.

The new line is already working at 80 per cent capacity producing nearly 8,000 tonnes per month and will add Rs. 450 crores to the top line in the first full year of operations and in the current year, it is likely to contribute over Rs. 200-250 crores.

The company already has orders on hand from Europe, West Asia and Latin America for export of pre-painted galvanized materials in the next three months.

Bhushan Steel is among the largest producers of CR steel for the domestic auto sector and nearly 60 per cent of its sales are to OEM customers. The white goods OEM customers include Whirlpool, Electrolux, LG, Samsung, BPL and Videocon.

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