DNA reported that Varun Industries, a Mumbai based stainless steel player, is looking to invest INR 2,100 crore to set up a pig iron plant in Karnataka under its broader plan to achieve complete backward integration in the next 5 years.

Mr Kiran Mehta CMD of Varun Industries said that "We are planning a 350,000 tonne pig iron plant in Bagalkot district of Karnataka. Around 500 acres of land is approved for the project and we are also awaiting clearances for an iron ore mine."

Mr Mehta said that the company, however, will not make any capital expenditure towards the Bagalkot project in this fiscal as it will be preceded by a steel flats project of 60,000 tonnes per annum in Jodhpur, where the company already has a 40,000 tonnes per annum capacity steel sheets plant.

He added that "This steel flats project is the second step of backward integration of our steel ware business which is expected to come up by May 2013. Once we have steel flats, we will be completely backward integrated in manufacturing stainless steel and related products."

Mr Mehta said that in the current fiscal, the company is planning to invest INR 700 crore in the upcoming Jodhpur facility, which may stretch into the next fiscal.

Varun currently manufactures and exports close to 1,800 items in cookware, kitchenware and housewife from its plant in Vasai near Mumbai. The raw material for the plant is supplied from its stainless steel re rolling plant at Jodhpur. The company also sells branded steel ware from its seven outlets across the country under the brand name of Premium Kitchenware and more.

(Sourced from www.dnaindia.com)