Salasar Techno Engineering Ltd on Wednesday said its new galvanising plant in which it plans to pump in Rs 50 crore this year will begin functioning by the end of March or April next year.
“The new galvanic plant will function by the end of March or April next year, the effect of which would be coming in the next financial year,” Salasar Techno Engineering Managing Director Shashank Agarwal said.
The plant, which will cost around Rs 50 crore, will be funded through bank loans as well as the company’s internal accruals.
“So, partly, it is going to come from our own internal accruals and partly, (we have) tied up with the banks. So, we are taking some term loans from the banks, which have already been approved,” Agarwal said.
The company has three galvanising plants. But, the plants have a limitation of size, in which a maximum of 1,600mm structure can be galvanised, Salasar Techno Engineering said in a statement.
“Nowadays, the use of monopoles is increasing in transmission segment as well as in other sectors also. In these sectors, monopoles of higher width at the bottom are required, so that the tower can have more height and strength,” the company added.
Currently, the company cannot manufacture these monopoles due to width limitation of its existing galvanising plants.
This facility will have a galvanisation capacity of 96,000 tonnes per annum.
With this new plant, the company said it will be able to manufacture monopoles of up to 3,000 millimeter (mm) diameter.
Further, the company’s galvanisation capacity will increase to two lakh tonnes per annum which will be sufficient for growth over the next three-four years.
“We will be doing about 8,000 tonnes per month from this plant alone. And, this will serve dual purpose- one is the increase in efficiency because of larger production, and second, less consumption because of better design plant, Agarwal said replying to a query.