October 12, 2008

Vesuvius sees strong refractory market in India

BL reported that, with several steel making capacities expected to go on stream during the next 2 to 3 years and the domestic steel industry projected to grow in double digit from 2010-11 onwards, refractory manufacturer Vesuvius India Limited is hopeful of sustaining top line growth of 15% to 20% from 2011-12.

Mr Tanmay Kumar Ganguly MD of Vesuvius India said that it achieved a top line growth of 17% in the calendar year 2007. He added that "Last year, when the steel industry grew at 8% to 9%, Vesuvius India achieved a top line growth of 17%. This was driven by a strong domestic growth of 20% and a more modest export growth of 11%. With the steel industry expected to grow in double digits by 2010-11, we hope to achieve a top line growth of 15% to 20% from fiscal 2011-12."

Mr Ganguly said that Vesuvius had evolved from being a refractory manufacturer and seller to a company that offers total solutions. At present, 50% to 60% of the company’s new service contracts could be attributed to its new positioning as a total solutions provider. This had facilitated better market penetration and, currently, the company has a 52% share of the domestic market for continuous casting refractories.

He said the capacity of Vesuvius’ factory in Kolkata is being doubled to 1,600 pieces a day from 800 at present at an investment of INR 50 crore. It has already commissioned its 40,000 tonnes a year refractory manufacturing unit at Visakhapatnam.

During the year ended December 31st 2007, Vesuvius India registered a total income of INR 323.10 crore up from INR 275.84 crore posted in 2006. In 2007, it posted a net profit of INR 32.07 crore as compared with INR 21.18 crore in 2006.