Tata Steel to add 1.1 lakh tonnes in its FAMD by 2014
The company, which has received environmental clearance for Gopalpur project, is likely to start construction soon. "There are plans to augment the production of ferro alloys….55,000 tonnes of ferro chrome and silico manganese each are expected to be operational in Gopalpur and Nayagarh respectively by 2014," the company said in its annual report.
FAMD is the sixth largest high carbon ferro chrome producer in the world, with a domestic market share of 25 percent and global market share of 5 percent.
According to the annual report, ferro alloys and minerals clocked a 3 percent rise in net sales to Rs 2,100 crore in FY12, compared to Rs 2,045 crore a year back. "The environmental clearance is in place and construction work for the Gopalpur project will start soon," a company official said.
Tata Steel has already placed orders for equipment for the Gopalpur project and is conducting the preliminary job for site clearances in Nayagarh of Odisha.
Tata Steel, which is on an expansion drive of its steel units in the country, has a capital expenditure plan of around Rs 50,000 crore for increasing capacity in Jamshedpur and Odisha.
While the company plans to spend around Rs 15,000 crore in a brownfield expansion in Jamshedpur unit, it has a capex plan of Rs 35,000 crore in its upcoming greenfield plant in Kalinganager of Odisha.
Tata Steel posted an 88.8 percent drop in its net profit to Rs 598 crore in the June quarter against Rs 5,347 crore reported in the corresponding period last year.