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Maharashtra Seamless plans steel plant buy

03 Jun 2011 Evaluate

Maharashtra Seamless may build or buy a steel plant to meet rising demand from domestic and overseas markets for its products. It will need 400,000 metric tonnes of steel billets down the line and backward integration will improve profitability and add shareholder value. Export markets such as the US are driving growth as oil prices are at a high and exploration and production activities will increase. That demand may benefit Indian suppliers as the US and the European Union have imposed anti-dumping duties on Chinese pipes.

Maharashtra Seamless is seeking to capitalize on the trade dispute to boost its presence in the US market. The company is also expanding in Brazil and the Middle East. A new Rs. 300-crore ($67 million) plant being built in Maharashtra will start production by September. The company may spend Rs. 170 crore in the year to March 31, 2012. A solar plant by Maharashtra Seamless is expected to be completed by the year end and will start selling electricity by January.

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Maharashtra Seamless Share Price

631.30 -0.85 (-0.13%)
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