The producers of Elegant Steel and TMT bars, SPS Steels Rolling Mills has been recently overtaken by Shakambhari Ispat and Power Ltd which is looking forward to increase the overall production capacity and spread the brand name all across the country.
Deepak Kumar Agarwal, CMD, Shakambhari Group of Industries has stated to the media that the net production for SPS Steel had recently decreased to 96,000 tonnes/annum. This has been a subject to acceleration with a net production of 1.75 lakh tonnes after the takeover. The group further plans to increase the production capacity by 2020-21 to 2.25-2.5 lakh tonnes/annum. The CMD further informed the media that Shakambhari Group plans to invest an amount of 150 cr. to the production in the coming fiscal year. This will be executed by the initiation of a steel melting shop that will further facilitate the company to achieve a target 3 lakh tonnes/annum production capacity.
According to industry reports, the installed systems that were available at the SPS Steels manufacturing plants had an annual production capacity of 1.8 lakh tonnes. However, it was noticed that the same was underutilised at around 35 percent before it was taken over. After receiving the approvals from the Kolkata bench of National Company Law Tribunal (NCLT), Shakambhari Ispat has paid an amount of 270 cr. to all the operational and financial creditors according to the plan of resolution that was pre-approved for the acquisition.
