Beating the recessionary trends in the steel market, Chhattisgarh based Shree Nakoda Ispat Limited (SNIL) has ventured into the production of TMT bars eyeing reach across the country.
The company having an investment of Rs 300 crore in the mineral-rich Chhattisgarh state has been a leading producer of sponge iron. Under the business expansion plan, the company has been looking forward to venture into other sectors that include power, steel and mining.
“The SNIL today launched the TMT (thermo mechanically treated) bars to become the first unit in Chhattisgarh to produce the same directly from a single facility,” Managing Director of SNIL Virendra Goel said. The TMT bars would be produced in the same plant where the company had been manufacturing sponge iron and billet.
Goel explained that the practice would be environment friendly as the billet produced in the plant would not be taken to other facility to produce TMT. Initially, the plant would be manufacturing 10,000 tonnes of TMT bars and would be one among a few units to produce it by billets instead of ingots.
“In fact, manufacturing TMT bars using billets would be comparatively expensive, but we have decided to go for it as we do not want to compromise with the quality,” Goel said. The TMT bars manufactured through billets are comparatively stronger than the one manufactured by using ingots, he added.
The company’s decision to venture into a new segment comes at a time when steel makers in Chhattisgarh are passing through worst phase of crises. The units are striving for iron ore while the market for the Chhattisgarh steel is also sinking fast following units coming up in southern states.
“No doubts it is a challenge,” Goel said, adding that they were hopeful to beat the crises and see a better prospect ahead. The company eyes market across the country to sell its new product.
The SNIL has been allotted coal and iron ore mines. Goel said they expected that the required clearances would be obtained at the earliest so as to start production in the mines soon.