Uttam Galva to Invest $60 Million

India-based galvanized steel manufacturer, Uttam Galva, said on Wednesday that the company has entered into a joint venture with Liberty Commodities, a UK-based trading company, to construct two new steel re-roller mills in Ghana at an investment of $60 million, or around Rs. 270 crores.

The joint venture company, Ghana Iron and Steel company, will invest $20 million in a 70,000 tonnes per annum hot-dip galvanizing line and $40 million in a 2,00,000-2,50,000 tonne per annum cold reversing mill.

Uttam Galva Director Commercial, Ankit Miglani said that the investment in Ghana will be made through a special purpose vehicle. Debt equity ratio for investment in Ghana will be 2:1.

He added that the hot-dip mill is expected to begin production by the end of this year, while the cold-reversing mill is planned for 2008. The majority of the hot-dip steel produced would be sold in the local market and small quantities exported to other West African states, the company said.

The two companies are also looking at the possibility of setting up a galvalume-aluminium and zinc coating line, Ankit Miglani said.

Mr. Rajinder Miglani saw this as a necessity and pioneered the company, Uttam Galva Steels Limited, in 1985. The CR Steel Galvanizing line at Khopoli, near Mumbai has turned into one of the largest producers of CRCA and Galvanized Steel in India.

Uttam has grown from a small beginning with 30,000 MT per year of galvanizing capacity in 1985 to more than 70 lakh tons per year galvanizing capacity today. It has gone from backward integration to cold rolling of steel and has added down-stream value additions such as colour-coated products etc.

Some of the achievements over the years are: Capacity to roll a million ton of cold rolled steel, galvanizing capacity of 7,50,000 tons, annealing capacity of 1,50, 000 MT of cold rolled close annealed products, colour-coating capacity of 80, 000 MT, company's turnover crossed over Rs.22,000 million (US $ 490 million) and exports Rs. 12,500 million (US $ 278 million) during the financial year 2004-2005. More than 70 percent of Uttam's products are exported to over 122 countries worldwide. The company has ISO 9001- 2000 accreditation and TS 16949/2002 certification.

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