The ₹100-crore expansion plans of ARS Steels and Alloy International Pvt. Ltd. at Gummidipoondi is facing an inordinate delay due to the pandemic and environmental clearances, said founder and MD Ashwani Kumar Bhatia.
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The Chennai-based manufacturer of quality TMT bars had announced plans to double the production capacity of furnace from 1.4 lakh tonnes to 2.8 lakh tonnes and that of rolling mill from 1.80 lakh tonnes to 2.5 lakh tonnes.
“Our expansion plans got hit due to pandemic and environment clearances. We are now in the process of getting the final clearance from the Pollution Control Board,” he told The Hindu.
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Asserting that there was no cost overrun due to the delay, he said that all machines required for the expansion were with them and the plant would start functioning from April 2024.
On the proposal to set up a new unit in Hosur for exports, he said it had been kept aside as the firm wanted to complete the expansion work on a priority basis.
He also said that expansion of a 100 MW coal-fired thermal plant was on hold due to geopolitical situation and the company had instead opted for solar energy.
The company closed FY23 with a turnover of ₹900 crore and hopes to achieve ₹1,100 crore after the expansion.
Mr. Bhatia said that the company would unveil a campaign across Tamil Nadu from the first week of August to create awareness among end-users about the quality of TMT bars. It will be conducted for one year through 12 mobile tech lab campaign vehicles, for which the company would be spending ₹15 crore. This service is provided free of cost, he said.