Source - www.moneylife.in

Mr Kiran Mehta chairman and managing director said that backward integration will give the company absolute control over quality and reasonably good control over cost

Varun Industries, the multi dimensional conglomerate with investments in steelware, raw steel, oil & gas, wind energy, mining, gems and jewellery, is setting up two units in Jodhpur and Karnataka. The company, which earns the bulk of its revenues from the export of stainless steel kitchenware, registered a 65% growth in net profit at INR 39.34 crore last year from INR 23.81 crore in the previous year and is working to consolidate its position in the premium segment at home. In an interview to Moneylife, Mr Kiran Mehta chairman and managing director discussed the company's growth and future prospects in India and abroad.

Q - When is the 60,000 tonnes per annum steel flat project in Jodhpur likely to be completed?

A - This project is yet to be completed. We have a manufacturing unit at Jodhpur which manufactures steel sheets. These sheets are used for manufacturing our end product at the Vasai plant. The current capacity of this plant is 18,000 tonnes, which is now being increased to 30,000 tonnes. The expansion is almost over. Another plant is for further backward integration, which will produce steel flats. This project could be completed in another three-four years. The initial phase of land acquisition is over, we have acquired 150 acres. The investment is about INR 800 crore.

To read full transcript, please visit www.steelguru.com