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SLR Metaliks invest Rs 60-70 crore to raise alloy steel manufacturing capacity

SLR Metaliks invest Rs 60-70 crore to raise alloy steel manufacturing capacity

Industry News
Aug 19,20

Despite COVID 19, the company - one of the leading suppliers of alloy steel to automotive and other industries - has increased the capacity from 0.3 million tonne to 0.4 million tonnes. While SLR Metaliks is pinning hopes on automotive industryÃ¢â‚¬â„¢s revival, it is also holding talks with DRDO for suppling alloy steel

SLR Metaliks invest Rs 60-70 crore to raise alloy steel manufacturing capacity

Delhi

Despite of challenging market condition triggered by COVID 19 pandemic, SLR Metaliks Ltd, a leading producer of alloy steel in the country, has invested Rs 60-70 crore to raise the production capacity. The company is gaining new momentum and turning a new leaf with its increased capacity manufacturing which has seen a jump during COVID 19 from 0.3 million tonnes to 0.4 million tonnes annually. It has strategically used the lockdown period to enhance its furnace capacity in a planned way through micro-planning.

SLR Metaliks during the COVID 19 lockdown was planning their production in a planned manner for capital repair as the demand during that time was next to negligible. It has also put in place scrap preheating system which is installed in EOF (Energy Optimized Furnace) to increase the overall EOF efficiency. Alongside, the refurbishment of the caster has been carried out to position the 3rd stand to match the increased production of hot metal from MBF (Mini Blast Furnace) to SMS (Steel Melting Shop) and higher usage of cold charge in EOF at the facility. With increased demands for coils, modifications are being carried out in consultation with the OEM players. Having this in place, the mill capacity can be enhanced to a level of 40 tonnes per hour.

Ã¢â‚¬Å“We are happy to announce our increased manufacturing capacity with regards to alloy steel. The exercise was an investment of about Rs 60-70 crores. The results of this capacity enhancement will start showing results in FY 2022, where sales will witness an increase of about 25 per cent,Ã¢â‚¬Â said Rajkumar Goel, Managing Director, SLR Metaliks Ltd.

SLR Metaliks is one of the leading suppliers of alloy steel to automotive industry, which has been going through a rough phase for the last few quarters. The overall vehicle industry witnessed a severe downturn in 2019-20 with sales reducing by 18 per cent. COVID 19 has worsen the situation in the automotive industry. While SLR Metaliks is pinning hopes on automobile sectorÃ¢â‚¬â„¢s revival, it is also holding talks with DRDO for suppling alloy steel.

Speaking about the demand, Rajkumar Goel said, Ã¢â‚¬Å“The recovery path has been slow but not disappointing as we are expecting a steady recovery in demand from automobile sector by September 2020. Hopefully if things improve by December 2020, we will see an upswing in demand which will also strengthen us as we will have the capacity at hand to provide the same. With our added capacity, we are also in talks with DRDO (Defence Research and Development Organisation) to supply them for defence needs. It has truly been an Aatmanirbhar phase for a company like ours which has been able to make a phenomenal leap.Ã¢â‚¬Â

The companyÃ¢â‚¬â„¢s joint venture with Fomento Group in 2012 led them to become the major alloy steel producers in India. Today, SLR Metaliks supplies alloy steel to over more than 40 original equipment manufacturers (OEMs) and their vendors. Currently 80 percent of the companyÃ¢â‚¬â„¢s production goes to automobile sector and the rest is supplied to industries related to agriculture, engineering and tube mill companies.

SLR Metaliks is one of the leading players in providing for alloy steel for automobile, OEMs, agriculture, textile machinery, engineering, boiler manufacturer, power transmission and many other industries. The company supplies various grades of alloy steel with its state-of-the-art manufacturing capacity near Hospet, Karnataka.