Wednesday, December 26, 2007

Sujana Towers......

Keep a tab on this company called Sujana Towers....
Read on:
MUMBAI: Hyderabad-based Sujana Group plans to invest around Rs 250 crore in one year to capture 10% of the total tower manufacturing market in the country and spread its wings beyond south India.
Of this, 20% — Rs 50 crore to Rs 60 crore — will be invested in expanding and strengthening its tower manufacturing business alone.
V S R Murthy, director, Sujana Group of Companies, said: “Our major focus is manufacturing and as a result the company does not have a huge order book.”
He said Sujana Towers has a manufacturing capacity of 1,28,000 per annum of structural steel which would be taken by to 2,28,000 tonnes per annum by June 2008. Sujana Towers Ltd has undertaken expansion of its Chennai facility by another 1,00,000 tonnes per annum. This facility manufactures galvanised and structural steel.“The company is currently working on orders worth Rs 150 crore and number of projects under execution is around five,” said Murthy.
Murthy said booming power sector is going to be the biggest contributor of revenues for the sector with almost 60% of its tower business coming from orders from the power sector. “The trend is likely to continue for the next couple of years with huge investments lined up in the transmission and distribution sector of the country,” he said.
The next revenue churner is the telecom tower business, which contributes 40% to its tower manufacturing revenues. Besides this, the company is quite upbeat about a substantive orders coming from the rural areas.
“Ten per cent to 15% of the telecom business of the company comes from the rural sector,” said Murthy. And with major initiatives of the government in rural electrification, business from the power sector of rural areas will also contribute largely.
Murthy said as per the estimates of the company, the current market demand for structural steel is in the region of 2 million tonnes per annum to 2.5 million tonnes per annum for the power and telecom towers together. Some of which is met through imports as well.
“We are planning a further additional capacity of 100,000 tonnes in the current year. This will also help the company boost its market share from 5-7% currently to 7-10% in a year,” he said.

No comments:

Post a Comment