Maa Mahamaya steel plant plans expansion

Visakhapatnam: Maa Mahamaya Industries Ltd, which set up the first integrated mini steel plant in the State in Vizianagaram district, is planning to double its current capacity (1.2 lakh tonnes of TMT bars and rods per annum), if the iron ore linkage is granted by the National Mineral Development Corporation (NMDC).

Mr Ashok Kumar Agarwal, Chairman and Managing Director, said at a press conference here on Saturday that the plant was set up at R.G. Peta village of Vizianagaram district and the commercial production began in October 2006.

“Under the brand name, Mangal TMT, we are selling our products in Andhra Pradesh, Karnataka, Tamil Nadu and parts of Kerala. The NMDC has not given us any assured iron ore linkage so far, and we are sourcing our raw material from Bellary in Karnataka and Orissa. Once we get the linkage, we plan to double the capacity,” he explained.

Expansion plans

Mr Agarwal said Mahamaya had invested Rs 290 crore in setting up the plant in an area of 103 acres, which would be sufficient for expansion, with the debt-equity ratio being 2:1. “We need to have Rs 250 crore or so for expansion and there is no problem with funds. We only have to get ore linkage,” he said.

Mr Sandip Tiwari, Vice-President (Finance), said the turnover during 2006-07 was Rs 103 crore and the projected turnover for the current financial year Rs 254 crore. “We have achieved Rs 170 crore by the end of December and we are confident of achieving the target by the end of the fiscal,” he said.

Mr Vittal, General Manager (Production), said all the teething troubles have been overcome and there is great response from the market to the company’s products.