Gontermann Peipers has confirmed orders of more than 6 months

Gontermann Peipers India Ltd has announced that the Company has confirmed orders of more than 6 months production as on date. Considering the future trend of business globally, the Company has given thrust for new product development i.e. enhanced carbide rolls in ICDP variety and High Speed Steel Rolls.

Rolls being integral to steel production, the demand is directly linked to the growth of the steel industry. The upturn in the steel production has resulted in increased demand for rolls. The Company expects to benefit from the upsurge in the steel industry and with the domestic steel industry adding capacity at a fast pace, the prospects for the roll industry appears to be both promising and challenging in medium to long term.

Considering the above along with many more new Greenfield steel projects upcoming, the domestic demand for steel is expected to grow by 8-10% over next few years. Analysts feel that the capacity utilisation of Indian Steel industry is good and will prevent steel prices from going down. According to National Steel Policy, the steel capacity is targeted at 100 Mn. Tonnes p.a. in 2019-20.

In view of the market potential and future growth of Steel industry, the Company has also drawn up an expansion-cum-modernization plan of Rs 400 million to enhance production capacity and produce value added rolls for the Steel Industry. On completion of the project by end 2007, the Company will have an annual production capacity of about 18000 MT finished rolls.

Source : Equity Bulls

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