MPIL Steel Structures Limited a Mumbai based turnkey solution provider for metal building products and integrated structural steel fabrication is setting up a steel fabrication plant in Bellary district of Karnataka with an incremental investment of around INR 170 crore to be made over two years.

Ms Priyanka Gupta executive director of MPIL Steel Structures told Business Standard that the facility, coming up on 21 acre, would have an initial annual capacity of 25,000 tonne, which would be scaled up to 100,000 tonne in the next two years. The plant would start production from April 2012.

She added that “We have already made an initial investment of INR 75 crore to kick start the work on the project. The entire project will be funded with 40% promoters’ equity and the remaining through traditional debt from the State Bank Group.”

According to Ms Gupta, the company intends to leverage the freight advantage that Bellary offers, besides the abundance of hot rolled steel in the region.

She added that “The new plant will be making only heavy structural steel and will be catering to the soaring demand by the infrastructure sector, including airports and high rise buildings, in both the states adding that the new plant was expected to generate revenues of INR 250 crore in the first year and become a INR 500 crore entity by itself once it crosses the 100,000 tonne a year capacity.”

(Sourced from BS)