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RAJPUTANA STAINLESS LTD. Advancing with the World
 
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Future Prospects  
 
 

Currently the company has an in-house Melting Unit, and Bright Bar unit and other facilities such as Drawing, Rolling etc are done by the Company outside on a job work basis. In order to achieve our goal of becoming a leading full-service integrated Stainless Steel Company with presence across the value chain, we are currently exploring options in the form of Backward and Forward Integration in the Stainless Steel Industry Value chain and are also considering certain key processes currently done outside, to be done in-house for improved productivity and profitability.

We plan to setup our own Rolling Mill at a plot adjacent to our existing production Plant in order to gain the advantages of forward integration. The land procurement for the Rolling Mill Project has been completed and the land leveling and shed construction for the same has already been started. We are also planning to increase our production capacity of Bright Bars to match the growing demand of this product. Also in order to further benefit from Power savings generated by owning Wind Energy Units we plan to set up a new Wind Mill having a Power generating Capacity of 1.5 MW at Gujarat.

Once the abovementioned projects are implemented we shall be able to process all the Stainless Steel we make from the Melting unit at our own Rolling Mills and hence achieve cost efficiencies provided by forward integration. Secondly, once the proposed wind energy units are operations we shall be able to save upto 60% of our Power costs. This will further lead to cost efficiencies and hence increase our competitive abilities.

 

Existing and future capacity & capacity utilization of our company:

 
  2005-06 2006-07 2007-08 2008-09 2009-10*
          (Apr-Dec)
Public Sector 16.964 17.003 17.091 16.372 12.483
Private Sector 29.496 33.814 36.766 42.065 33.292
Total Production 46.460 50.817 53.857 58.437 45.775
% of Public Sector 36.5 33.5 32 28 27
Source: JPC
* - Provisional

(Source: Ministry of Steel, GOI, Annual Report 2009-10)

 

According to the projections made by the Steel Ministry in its annual report (2009-10), India is expected to maintain its lead in Sponge Iron in the near future and is expected to become the second largest producer of steel in the world by 2015-16, provided all requirements for fresh capacity creation are met.