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Uttam Galva to spend Rs 500 crore for making high value products

11 May 2012 Evaluate

In a bid to make high value products, Mumbai-based Uttam Galva is planning to invest Rs 500 crore in the current fiscal year. This will improve the company’s operating margins by 2 percent to about 12 percent.

The technology integration programme, which is being overlooked by a team headed by ArcelorMittal’s India and China head Vijay Bhatnagar, will bring in new plant and machinery to manufacture products which are now imported by Indian users of consumer goods.

Uttam Galva is a cold-rolled steel player that makes products used to make bodies for cars and consumer goods. ArcelorMittal India owns 34.42 percent in the company.

The company’s standalone net profit surged about two-fold to Rs 40 crore for the fourth quarter ended March 31, largely on account of increased efficiency in operations. The company had reported a net profit of Rs 14.05 crore during the January-March quarter of 2010-11.

Further, the company plans to build green-field plants in Karnataka and Odisha, is waiting for the new iron ore policy before finalising its plan for Karnataka. While the company’s progress in Odisha has slowed, in Karnataka, Uttam Galva has already started the process to buy over 5,000 acres.

Uttam Galva Steels Share Price

3.40 0.00 (0.00%)
17-Oct-2022 18:01 View Price Chart
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