Alloy steel manufacturer SLR Metaliks Limited has increased its annual manufacturing capacity to 400,000mt from 300,000mt by magnifying its furnace capacity in a planned manner during the lockdown period, the company said in a statement.
The company has also placed a scrap preheating system to increase the overall EOF efficiency. It said that modifications are being currently carried out in consultation with the OEM players. This way, the mill capacity can be enhanced to a level of 40 mt per hour.
Rajkumar Goel, Managing Director, SLR Metaliks Ltd, said the company invested around Rs60-70cr for the capacity enhancement which will increase its sales by 25pc by FY22.
The company is expecting a steady recovery in demand from the automobile sector by September 2020 and by December 2020, it will witness an upswing in alloy steel demand.
They are also in talks with the Defence Research and Development Organisation (DRDO) for supplying steel for defense purposes.
Established in 2005, the company supplies various grades of alloy steel to automobile, OEMs, agriculture, textile machinery, engineering, boiler manufacturer, power transmission, and other industries from its manufacturing capacity near Hospet in Karnataka.
Around 80pc of the company’s production goes to the automobile sector and the rest is supplied to industries related to agriculture, engineering, and tube mill companies.