Kamdhenu Ispat identifies New Steel Vertical, forays into Structural Steel

Kamdhenu Ispat Ltd has announced that the Company has embarked into the production of structural steel, manufacturing various products in the segment such as angles, beams, channels and flats etc. through strategic franchisee association.

It the segment that is growing with an annual Compound Annual Growth Rate (CAGR) percent of 6%, the production of structural steel has been 3.8 Mn Tons in the year 2006-07. In such market scenario the Company in association with franchisee units has kept the production target of manufacturing 3 Lac Tons structural steel in the current financial year, which will be further elevated to 10 Lac Tons in the next two years.

In the latest chairs of events, the Company penned strategic tie-up for manufacturing of the Kamdhenu brand structural steels with Venus Rolling Mills Pvt. Ltd in Maharashtra, Shree Ambika Alloys in Punjab and Kundlas Loh Udyog in Himachal Pradesh. These units would cater to the market with Kamdhenu brand structural steel across the respective regions. The Company has also entered into a franchisee agreement with Raika Ispat Udyog Pvt Ltd. in Chhattisgarh for manufacturing of Kamdhenu brand binding wires, a new venture in the steel segment.

Elaborating on the latest foray of the Company into structural steel segment, Mr. Satish Agarwal, Chairman & Managing Director of the Company said, "We have entered India's booming structural steel segment in association with our franchisee units based in Maharashtra, Punjab, Himachal Pradesh and Chhattisgarh. Kamdhenu's venturing in the structural steel segment is in the continuation of our vision to diversify into the core profile in the steel sector. The structural steel segment is growing on fast pace with the construction boom in the country. It is predicted that by the year 2011-12, the annual production capacity of the sector as a whole would reach 5 Mn Tons. The scenario is optimistic for us."

With its high end quality monitoring body in place the Company ensures the utilization of best quality raw materials for the manufacturing of structural steel. Angles, channels, beams and flats that are produced from this structural steel are tough to hold frames of any size and proportion.

With high strength and high ductility, these products ensure the maximum safety to any construction. Kamdhenu structural products also have superior bendability, weldability and straightness that ensure better fabrication. With lower sectional weight and higher strength technique, these products are highly cost effective and save steel.

With a strong network of over 2500 dealers and distributors across the country, the Company has carved its own niche in India's booming construction segment. It has an efficient marketing set up in place making a sturdy brand presence for the Company all across the country.

Among their wide usage in construction business, the Company high value structural steel will be used in the building of bridges, buildings, transmission line towers, industrial sheds, as well as in the manufacture of automotive vehicles, ships, etc.

The Company has already established a successful model for manufacturing of reinforcement bars with its 25 franchisee units having annual production capacity of 10,00,000 MT which are located across the country. The Company has also delved into the business of Housing sector with two projects at Chandigarh and Jammu under the franchisee arrangement.

Source : Equity Bulls

Keywords