RINL slates for 45 % growth in volumes this year
Indian steel major Rashtriya Ispat Nigam Ltd is riding high, even at a time when the global steel market is going through tepid times.
Registering an eight per cent growth in sales in last fiscal, the steel honcho is gearing up for a 45 per cent increase in production volume for the current fiscal.
This, the company feels, will be possible that the year will see its Vizag plant reaching a critical stage in its expansion journey, with new units commencing production.
Mr P Madhusudhan, Chairman and Managing Director, who is steering the company to greater heights, combating a slump in global and domestic markets, said the revamping of blast furnace 1 may be completed in a month or so and then revamping of blast furnace 2, sinter plant and converters would be taken up.
“All these would add another million tonne to the capacity of the plant.
We have increased the capacity of the plant from 3 million tonnes to 6.3 million tonnes by spending Rs 11,000 crore or so and we will be spending Rs 4,000 crore on modernising the old units. The capacity would go cross 7 million tonnes then,” he said during an interaction with the media earlier this fortnight. RINL achieved remarkable 4% growth in liquid steel,crude steel and saleable steel production and the gross coke and gross flux production was the best since inception and thus despite power restriction by the state govt, RINL registered growth in production.
RINL new vision is to make VSP, known for its quality products wordwide, into a 20-million-tonne steel plant.
Last fiscal, the company notched up a sales turnover of rs 13,527 crore, including exports of Rs 750 crore.
What is more significant about this is that this was possible despite the tough market conditions and lower realisations, as a result of a slump in steel prices internationally.
“During the current financial year, we will also focus on exports with increased output. We have already set up an office in Sri Lanka and we will explore the market there,” Mr Madhusudhan said.
The company is introducing pulverised coal injection technology in the three blast furnaces, as it was cost-effective and low-quality coal could also be used.
It is also trying to develop the iron ore mines allocated to it by the Rajasthan Government at Bhilwara and the mine may become operational in 5-6 years, as part of its efforts to achieve raw materials security. It is estimated that the reserves of iron ore in the mine is appx 250 Million Tonnes.
Mr Madhusudan said the tendering process was going on with regard to the largest forged wheel plant being set up by RINL at Rae Bareli in Uttar Pradesh along with the Railways.
Not to forget the contributions of the local industries, RINL is also making efforts to develop ancillary units in and around Visakhapatnam and extend a helping hand to the smaller units.
“The company’s turnover of Rs 13,527 crore during the year.
“RINL achieved four per cent growth in liquid steel and saleable steel in 2013-14 besides achieving best techno-economic parameters in various areas,” the company said.