NEW DELHI, Apr 10:
Steel products maker Goodluck India will invest Rs 200 crore over the next two-three years to expand capacity, its Chairman and Managing Director (CMD) M C Garg said.
BSE-listed Goodluck India has five manufacturing units at Sikandrabad (Uttar Pradesh) and one in Kutch (Gujarat) with a total installed capacity of 3,40,000 tonnes per annum.
“We are in an expansion mode and will invest Rs 200 crore over 2-3 years to increase our capacity to 5,00,000 tonnes as demand for our products from customers is continuously rising,” Garg told PTI in an interview.
The company manufactures a wide range of engineered steel structures, precision/auto tubes, forging for defence and aerospace, CR (cold rolled) products and GI (galvanised iron pipes) pipes. These products are used by automobile manufacturers, infrastructure companies, industries like engineering, oil and gas, among others, he said.
Replying to a question on funding for the expansion, Garg said the company will be using some of its own funds and “the remaining portion will be arranged through various sources including bank funding.”
On the issue of rising steel prices, he said hot rolled (HR) coil is the main raw material which Goodluck India uses to manufacture goods and the rate of steel has almost doubled to Rs 80,000 a tonne from the levels witnessed one year back.
Garg said his company also has plans to acquire certain steel products making assets in the long run.
“We do have such plans. Options are always open. We will look for assets post completion of the expansion project,” he said.
Sharing further details, Garg said the company has crossed Rs 1,100 crore worth exports in financial year 2021-22, and the current order book stands at Rs 800-900 crore.
At Rs 1,100 crore, the exports were 130 per cent more compared to Rs 475 crore in the 2020-21 fiscal, he added. (PTI)
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