Posco, Poggenamp JV to begin plant by Feb end
Having signed a joint venture (JV) for manufacturing transformer laminate, Korean steel giant Posco and Ahmedabad-based Poggenamp Nagarsheth Powertronics Pvt Ltd (PNPPL) are eyeing a Rs 250 crore turnover by 2014.
The 74:26 per cent equity based JV between PNPPL and Posco recently launched the facility for manufacturing cold rolled non grain oriented (CRNGO) steel at Vavdi, Kheda near Ahmedabad. Both PNPPL and Posco have together invested around Rs 72 crore in the ratio of 74:26.
Spread across an area of 46,000 sq mts, the plant has a capacity of around 24,000 metric tonnes per annum. The CRNGO, according to Gautam Nagarsheth, chairman of PNPPL, will be used in making laminates for transformers.
With the CRNGO raw material being in short supply in India, PNPPL used to source the same from Posco. “However, we have now entered into a JV wherein apart from equity Posco will also assist us in sales of the laminates for transformers. While in 2013 we are looking at a Rs 150 crore turnover out of the JV, by 2014 we expect it to rise to Rs 250 crore. We will commission the plant by February end this fiscal,” said Nagarsheth. The group turnover of Poggenamp is expected to be around Rs 400 crore by 2014, including Rs 150 crore turnover of PNPPL.
Apart from catering to the domestic market, the new plant will look at exporting 25 per cent by 2012 to over 20 countries in regions like Middle East, South East Asia, the US, Canada, Europe and Africa.
By 2013, the company is looking at 70 per cent capacity utilisation.
“While we targeting 25 per cent exports in 2012, by next year we intend to raise to 35 per cent. On the domestic front, the plant will initially supply to three exclusive territories including Gujarat, Rajasthan and Madhya Pradesh,” Nagarsheth added.