Raipur-based Shri Bajrang Power & Ispat (SBPIL) will put up a Rs 1,465-crore greenfield steel unit to manufacture 0.5 million tonne per annum (mtpa) hot-rolled coil to feed it newly-commissioned pipe mill. The IPO-bound company may embark on raising capacity of the greenfield unit to one mtpa after the completion of the first phase in the next three years, depending upon the prevailing market condition, sources said.
SBPIL has acquired the requisite land in Raipur for the proposed 0.5 mtpa unit, which will produce steel using blast furnace route; but is awaiting other clearances to start construction of the unit.
Company is also putting up 50 MW solar power capacity to promote use of green energy in steel making. “ERW pipes is the fastest growing segment in carbon steel pipes space. At present, we buy HRC from others to feed the plant. Once we have our own HRC, it will give us a huge boost to our business and operations,” said
SBPIL’s executive director Anand Goel.
SBPIL, which produces TMT bars under Goel TMT brand name, reported Rs 3,064 crore revenue last fiscal, up 15% over the previous fiscal. The company has three manufacturing units in Raipur with a total saleable metal capacity of 1.76 mtpa. It also has around 100 MW captive power generation capacity and a captive iron ore mine with approval to mine 1.2 mt a year.
Its captive source meets around 60% of the need. SBPIL would bid for mines to be put up for auction in the coming days considering the additional need would be arising out of the new steel mill.