Mahalaxmi Group launches TMT bar at an investment of Rs. 100 crore

Mahalaxmi Group is all set to introduce itself into the TMT Bar industry by launching Mahalaxmi TMT Bar. Shree Mahalaxmi Vinimay Pvt.Ltd. is the new enterprise of Mahalaxmi Group. The new venture will be producing Mahalaxmi TMT bars in association with the world renowned Thermex process from Germany.

• Beating the downturn in real estate sector, Mahalaxmi Vinimay, a Rs 250 crore group based out of Kolkata, with operations in steel and metal across west Bengal, Jharkhand and Bihar has launched two new TMT bar brands this month. The two new brands are: EQR (earthquake resistant) brand for the hilly regions and CRS (corrosion resistant) brand for the coastal regions. Mahalaxmi becomes the first brand in India to sell two different brands of the same product according to their utility in varied geographical regions.

• Mahalaxmi Group is a well known Steel manufacturing group in Eastern India. They have a chain of value added products, which includes Reinforcement steel TMT bars specially rolled from billets and wire rods, MS Rounds, Pig Iron, Ingots.

• Mahalaxmi TMT Bars are available at a range of 8, 10, 12, 16 mm in Grades of Fe-415,500 at fixed length of 11/12 meters. The premium quality TMT bar has a wide application range in general purpose concrete reinforcement structures, like high rise buildings, bridges & flyovers, dams, thermal and Hydel power plants, industrial structures and other sophisticated concrete structures.

• The modern research and development departments at the manufacturing facilities, constantly works to ensure strict quality control, consistently upgrades technologies to meet customer expectations, to reduce manufacturing costs and imbedding latest technologies in their range of products. The company is conscious about their responsibility towards environment and social development. Preventive measures for damage to the environment are taken into account at the planning stage of production and growth. Eco-efficiency is their main principle and keeping this in mind they have launched 2 varieties of TMT Bars – EQR (Earthquake Resistant Bar) and CRS (Corrosion Resistant Bar).

• The advantages of Mahalaxmi TMT Bars are greater bond strength, easy bend ability and lesser crack.

• Mahalaxmi Group has chalked out a huge marketing plan where they are planning to tap the All India market and gradually extending to export to the foreign countries. Discussions are going on for foreign collaborations. The vision of Mahalaxmi Group is decentralization of the production base by strategic tie-up of unbranded manufacturing units in the state of West Bengal and convert the same into Mahalaxmi brand. This will be done through technological up-gradation, implementation of quality Management System and effective distribution through wide spread sale depot network. They are putting their best efforts to create consumer awareness for quality construction steel and adopt the policy of “Best Quality Best Price”.

• Mahalaxmi Group which started manufacturing steel first in the year 2001 has reached to a mark of being a 250 crore company. With an investment of 80 crores and above they have installed four factories in West Bengal and Howrah and a rolling mill located at Jangipur .With a projection of increasing the production to 1 Lac tones by 2010 the company is investing huge amounts of money in importing state of the art modern machinery from international market .It is also involved in government projects in southern part of the country. The company is planning to set up 2 new rolling mills by next year with an additional investment of 80 crores.

• Mahalaxmi group takes a proposed stride towards strategic alliance to increase production capabilities

• Mahalaxmi Group a leading name in Steel and TMT Bar industry has taken a proposed stride towards strategic alliance to increase production capabilities. Mahalaxmi Group is a well known Steel manufacturing group in Eastern India. They have a chain of value added products, which includes Reinforcement steel TMT bars specially rolled from billets and wire rods, MS Rounds, Pig Iron, Ingots. . It is the fastest growing company catering to the industrial and infrastructural growth of India, wishing to consolidate their standing at the pole position through quality, commitment and hospitality.

• Mahalaxmi has adopted an extraordinary strategy to broad base its production capabilities. Step one , it has chalked out an ambitious plan to set up two large TMT bar manufacturing facilities within west Bengal with investments of 100 crore upward in next two years . Step two, Mahalaxmi is negotiating with various small to medium, sick and underutilized re-rolling mills strewn across West Bengal, Bihar and Jharkhand for strategic alliance.

• The second measure is rather interesting says Mr.Gopal Agarwal Chairman and Managing Director of Mahalaxmi, “There are plenty of mills across eastern region which are manufacturing unbranded TMT bars. More than half of them are in poor shape. I am in talks with the owners of these mills, to merge with Mahalaxmi without our physical takeover of their assets. Its win – win situation for both. They retain their assets. We get multiple manufacturing bases which help us reduce the freight and transportation cost leading to higher profits.”

• According to the General Manager Marketing of Mahalaxmi TMT bar, Mr. Zafar Ahmed, Mahalaxmi is planning to enter into multiple strategic alliances with various small unbranded rolling mills across north India. “In order to gain quick market share at a relatively smaller capital investment, it’s wiser to acquire existing factories than set up Greenfield projects at very high cost. Freight is the single most impediment for any TMT bar manufacturing brand to achieving national presence. We shall overcome that issue through the acquisition route.”

• Mahalaxmi Group has chalked out a huge marketing plan where they are planning to tap the all India market and gradually extending to export to the foreign countries. Discussions are going on for foreign collaborations. The vision of Mahalaxmi Group is decentralization of the production base by strategic tie-up of unbranded manufacturing units in the state of West Bengal and convert the same into Mahalaxmi brand. This will be done through technological up-gradation , implementation of quality Management System and effective distribution through wide spread sale depot network. They are putting their best efforts to create consumer awareness for quality construction steel and adopt the policy of “Best Quality Best Price”.

• However that is not to suggest that Mahalaxmi is not investing in new self owned projects. Here is the investment blueprint for the company over next two years .

• With an investment of Rs 100 crores Mahalaxmi has installed four factories in West Bengal and Howrah and a rolling mill located at Jangipur. The projected increase in production is over 1 Lac tones by 2010. Currently the company is investing huge sums of money in importing state of the art modern machinery from Germany, UK and USA.

• The company is planning to set up 2 new rolling mills by next year with an additional investment of 120 crores. Most of funding shall be through debt.

• The company has drawn up a plan for launching a public issue in the year 2011 for raising an additional Rs 200 crore.

• The public issue fund shall be used for raising more Greenfield projects up north and south India to cater to the fledgling government project markets.

• Mahalaxmi TMT Bars are available at a range of 8, 10, 12, 16 mm in Grades of Fe-415,500 at fixed length of 11/12 meters. The premium quality TMT bar has a wide application range in general purpose concrete reinforcement structures, like high rise buildings, bridges & flyovers, dams, thermal and hydel power plants, industrial structures and other sophisticated concrete structures.

Mahalaxmi is likely to complete the entire value chain of products like Reinforcement steel TMT bars specially rolled from billets and wire rods, MS Rounds, Pig Iron, Ingots etc by the year end.