100 crore expansion projects of ARS Steels and Alloy International Pvt. Ltd in Gummidipoondi is facing inordinate delays due to the pandemic and environmental clearances, said Ashwani Kumar Bhatia, founder and MD.
Chennai-based manufacturer of quality TMT bars had announced plans to double the production capacity of the furnace from 1.4 lakh tonnes to 2.8 lakh tonnes and the production capacity of the rolling mill from 1.80 lakh tonnes to 2.5 lakh tonnes.
“Our expansion plans have been disrupted due to the pandemic and environmental clearances. We are now in the process of getting final approval from the Pollution Control Board,” he told The Hindu.
Assuring that there will be no cost overrun due to the delay, he said that they have all the machines required for the expansion and the plant will start operations from April 2024.
On the proposal to set up a new unit at Hosur for exports, he said it was shelved as the firm was keen to complete the expansion work on priority basis.
He said the expansion of the 100 MW coal-fired thermal plant has been put on hold due to the geopolitical situation and the company has opted for solar energy instead.
The company, which ended fiscal 2023 with a turnover of Rs 900 crore, expects to achieve Rs 1,100 crore after expansion.
Mr. Bhatia said the company will launch a campaign across Tamil Nadu from the first week of August to create awareness among end users about the quality of TMT bars. It will be run for one year through 12 Mobile Tech Lab campaign vehicles and the company will spend Rs 15 crore. This service will be provided free of charge, he said.