News Correspondent, abptakmaa, Kolkata, 10th Jan 2020 : SPS Steels Rolling Mills Limited is looking at a profit before tax to the tune of Rs 25 crores for the fiscal 2019-2020 nine months after its takeover by the Shakambhari Group.
Last fiscal SPS steel that ran into red, already now has a profit before tax of around Rs 19.5 crore by the end of third quarter and is looking at a figure of Rs 25 crore by the end of the financial year in comparison to the losses of -5 cr in the financial year 2018-19.
“The expected turnover for the SPS will be a rise of 200 per cent from Rs 480 crores to approximately RS 900 crores for the financial year 2019-20. The company aspires to achieve the turnover of 1500 crores in the financial year 2020-21. The Shakambhari Group’s aggregated turnover is targeted at 3000 crores for the financial year 2019-20 and in the fiscal year 2020-21, the group is aiming to achieve a turnover of 4000 crores.
We have a vision of a green environment in this sector. It is with this vision that we are in the process of installing a captive power plant that will improve production efficiency, bring cost control, reduce carbon foot print and create zero waste,” said Mr Deepak Kumar Agarwal, CMD, Shakambhari Group.
He further added, “The mother company plans to invest another Rs 150 to Rs 200 crore in the coming fiscal while tidying up the meaningless expenditures. Our expansion process includes a steel melting shop that will help us reach around 3 lakh TPA from one lakh TPA.” The group has taken serious measures for modernization of the plant and is in negotiation for foreign collaborations for technology upgradation. Set of positive measures are being injected into the system for further enhancement of the quality, increase and maximize its productivity aided by cost reduction, reducing carbon print and creating a zero waste plant.
“There has been an increase in manpower generating further employment. The figures have risen by 20 per cent resulting in employment of 340850 man-days in permanent, casual and tertiary employment,” said Mr Deepak Kumar Agarwal, CMD, Sakhambhari Group.
Mr. Ankit Mittal, VP, Business Development, Sakhambhari Group said that SPS Steel is aggressively penetrating into the market. “We have added more than 200 dealers in West Bengal alone and are looking to grab around 15 per cent share of this segment by the end of the financial year. We have started to penetrate in Jharkhand, Bihar, Odhisa and North East as well as in North Indian markets. We are moving in the direction to make ELEGANT STEEL a pan India brand, while looking into opportunities of setting up manufacturing facilities in South, North and Western part of the country.”
SPS Steel annual production of last year amounting to 96000 TPA will be 1.75 lakh TPA by the end of the fiscal showing marked growth in production capacity also. By 2020-21, the production is expected to reach 3 LTPA. The Shakambhari Group will be producing its premium QST bars from their other facilities also.
Being a responsible corporate citizen, Shakambhari Group has undertaken various community welfare activities under its CSR activities like distribution to tri-cycles for physically challenged persons, installation of water filter cum purifier with water cooler for drivers, workers and local citizens, school Bag and tiffin distribution to the local school kids, blanket distribution to the need ones.