Radha Smelters aims and targets to achieve a sales of 1,500 crores in the Financial Year 2022-2023
Hyderabad, December 02, 2021: Radha Smelters, a leading brand in South India in TMT bars to launch on 6th December, a new product range 550D LRF (Ladle Refining Furnace) TMT (Thermo Mechanically Treated) Bars produced through LRF Route. Higher ductility and tensile strength is the hallmark of this new range. The new range bars are considered ideal for critical infrastructure projects and high-rise buildings.
There are many grades in steel bars, 550D is a superior grade steel bar with high ductility. It is a special grade bar that only handful of companies in India are able to manufacture. This grade is used for high rises and for bridges, dams, ports, flyovers, bridges, wind turbine foundation and other structures that require a high load-bearing capacity.
550D grade TMT bars are preferred for some specific properties, that are resistant to earthquakes. These bars are resistant to earthquakes due to their soft pearlite core and can bear seismic and dynamic loading.
Currently 550D grade steel for infrastructure and high rise buildings projects is being primarily supplied by large steel produces like SAIL, Vizag Steel, JSPL, JSW and TATA. Now Radha TMT, the 60 years old, third-generation company, joins the elite group of such companies.
This promising product range with future full of promises will be formally launched in the presence of top leadership of mega Infrastructure companies, their representatives and Radha’s brand ambassador Mr. Daggubati Rana on 6th December in an elite Event to be held at HICC.
Disclosing this, while addressing a press conference in the city on Thursday, Mr. Sunil Saraf, Chairman, said ‘what is unique about this product range is the LRF Route, which is used for the first time in South India to manufacture steel that is required for infrastructure projects’.
Explaining the process of the production, Mr. Sunil Saraf said, these bars are produced through the integrated Iron ore – Sponge iron – Induction furnace – LRF – Rolling mill route. The Ladle Refining Furnace route will be used in an induction based steel plant.
‘The company has set pivotal roles for the manufacturing process, sales and marketing of the brand, through which it aims and targets to achieve a sales of 1,500 crores in the FY 22-23’, said Mr. Suman Saraf, Managing Director. The turnover of the FY 2020-21 was Rs 530crore and for FY 2021-22 wil be 1000crore.
Currently, it has installed capacity of 0.2million tonnes per annum. It has expanded 0.2mn capacity further with the introduction of the new product. With this its total installed capacity now is 0.4million tonnes per annum. It has invested Rs 75 crores already in new technology to produce 550D range bars and to enhance the capacity. Further, the plans are on the cards to further increase the installed capacity to one million tonnes per annum by the year 2025. It may further invest INR 75 crore to 100 crore for increasing capacity to 1 million tonnes. It has only one plant at ChinnaShankarampet in Medak District. We will focus more on the existing plant rather than expanding to new locations shared Mr. Snehil Saraf, Director and CEO. He has not ruled out expanding to neightouring state Karnataka, but not in near future.
With the enhanced capacity to 0.4million tonnes per annum, the company is looking at garnerning 7 to 8% marketshare from current level of 3 to 4%.
Telangana is a very big market for us. There is all round development going on in the state. We see Telangana as future for us in next five to six years. We have not heard many sky scrapper project coming up in Hyderabad in the past. But, in the last six months we have seen the launch of nearly 40 to 50 sky-scrapper projets all above 30floors announced in Hyderabad. All these projects need 550D LRF TMT Bars and we are the only manufacturer out of 125 in south India (in the category of Induction Furnace LRF Route). So this is the quality furtuuristic product required for building the future of Telangana and India declared Mr. Snehil. Further, he announced that the company got approval by irrigation, CAD and all government departments. The company is also supplying steel to the new Telangana secretariat through Shapoorji Pallonji group who bagged the contract work for the same.
Giving industry overview, Mr. Snehil said, the India’s installed steel capacity last year in FY 2021 was 130 million tonnes and produced 95 million tonnes in FY 21. The production os steel is expected to go upto 110 million tonnes in FY 22. India is the second-largest steel producer in the world. China has the installed capacity of more than 1000 million tonnes per annum and produced around 950 million tonner per annum last year.. It is 9 times that of India. The steel consumption of Telangana state is 3 million tonnes per annum. India is still cheaper compared to players in the international market. India is good in cost-effectiveness, high quality, he added.
Radha TMT will use a combination of Iron ore as the raw material and Ladle Refining Furnace as a process technology to produce the highest quality steel that is refined to the fullest and meets the stringent Sulphur and Phosphorus norms of BIS 550D grade. Refining in LRF will ensure low Sulphur, low Phosphorus, low gas and low impurities level in the steel. This will make Radha 550D LRF TMT bars the preferred choice of customers wanting quality steel bars for their critical infrastructure & construction projects.
‘The iron ore that we have in India has higher levels of Sulphur & Phosphorus. To make 550D LRF grade of TMT bars, the Sulphur and Phosphorous has to be reduced through the refining process in the Ladle Furnace. The Desulphurization and Dephosphorization, which will be done in the LRF will bring the Sulphur and phosphorus below .04 each thereby increasing the ductility of the bars.This will make them ideal for use in building critical infrastructure in seismic zones, high-rise buildings, building of flyovers, ports & airports, dams, large industrial structures etc’. added Mr. Suman Saraf.
‘With the production of 550D LRF grade TMT bars through the state-of-the-art Ladle Refining Furnace route, Radha 550D LRF TMT is expected to achieve the status of being the “preferred brand” for every leading Builder, Structural engineer and Infrastructure projects engineer’, added Mr. Sunil Saraf.
It is the First company in Telangana approved by the board of Chief Engineers to supply to critical infra projects like irrigation, Roads & Buildings etc.