CHENNAI: Sujana Metal Products, belongs to Sujana group of companies is aiming to achieve one million tonne finished steel capacity after completing the planned integration activities. A part of backward integration had already been started, according to R. K. Birla, Managing Director.
Addressing presspersons here on Thursday, Mr. Birla said the company hoped to achieve 50 per cent backward integration through acquisitions and expansion of billet making facilities at the end of Phase-I in December this year. In Phase-II, by June 2010, the group will achieve expansion of balanced finished capacity and complete the backward integration, including creation of five lakh tonnes of sponge making capacity, said Hanumantha Rao, Director (Finance).
The growth plans of Sujana Metal Products hinge on higher percentage of value added products (entire range of structural steel and ready to use steel), forward integration and completion of backward integration upto the stage of iron ore mining.
The group has presence in key sectors such as steel, telecom, transmission towers, infrastructure areas.
Sujana Metal has acquired five steel companies in the last 12 months for a total value of Rs. 250 crore.