New Delhi, July 22 (IANS) Rudra Global Infra Products, engaged in manufacturing of MS billets and TMT Bars of the finest quality, have informed the exchanges on the successful completion of a recent expansion into TMT bars. According to the company, the recent expansion of a new rolling mill has successfully completed its trial runs for all the sizes in the product portfolio. The expansion has led to an increase in the overall installed capacity for manufacturing TMT Bars from 1.2 lakh tonnne/annum to 2.4 lacs tonne/annum.
The enhanced production will contribute significantly in increasing the top line as well as overall profitability of the company.
Talking in detail, Sahil Gupta Director at Rudra Global said: "With the increase in manufacturing capacity given the current situation we are expecting to achieve a top line of Rs 600 crore and bottom line of Rs 18 crore. Also if an opportunity arises and we are able to operate on 24 by 7 basis, then we shall be able to achieve top line of Rs 1800 crore and bottom line of Rs 60 crore."
"Owing to the difference in tariff rates offered by GEB in the state of Gujarat we are currently operating in night shift only as the power rates which constitute a major portion of our cost of production, is cheaper vis-a-vis to the rates for units operating for 24 hours. Also, to reduce our reliance on external sources for meeting our energy requirements, we have periodically set up wind mills to meet our needs. Currently, approximately 10 per cent of our requirement is met through renewable energy. In the next 5 years we plan to increase our renewable energy consumption to 50 per cent. In the next 3 years we see our turnover to grow at CAGR of 10 per cent," he added.
According to the management, the edge they have over competitors is that on account of having an integrated plant they follow the hot-rolling process, which substantially reduces the cost of production for manufacturing TMT Bars.
The firm has extensive network of dealers with presence in 400+ locations across Gujarat. Out of these around 150+ dealers are exclusive dealers, helping them to command a premium for product offerings in the market.
The company also enjoys royalty income from franchise units engaged in manufacturing cement and pipes under our brand name – Rudra Cement and Rudra Pipes.
Rudra Inframart – a flagship solution offered by the company to meet all infra related requirements of the customer under one roof.
Currently, there are 8 such stores across Gujarat. Rudra Global plans to open 12 more such stores in Phase-2 of expansion in the next two years.
Rudra Global is also set to revive the Defence business. After completing the expansion in TMT business, the company has started reviving the stalled work in the defence project and work is in progress in construction of the factory building. Post completion, the company intend to supply specialised parts to bigger players in the defence and aviation sector.
--IANS
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