RINL eyes net profit; U.P. plant to be ready in 2019

Rashtriya Ispat Nigam Ltd. (RINL), the corporate entity of Vishakhapatnam Steel Plant aims to be back in the black this fiscal, according to chairman and managing director P. Madhusudan.

After two consecutive years of losses, totalling ₹2,600 crore since 2015-16, RINL earned cash profits in the year ended March 2018. The company had stabilised after completing a ₹16,300 crore modernisation and a capacity augmentation plan.

The steel major will also commission its forged wheel factory at Lalganj near Rae Barelli in U.P. by early 2019, marking its first geographical and product diversification since inception almost 35 years ago.

The unit entailed an of investment ₹1,600 crore, and is likely to add ₹560 crore to RINL’s annual revenue, which is estimated at ₹16,500 crore for 2017-18. RINL is an integrated steel player making long products used in construction, manufacturing and infrastructure.

Pact with Railways

The firm had signed an agreement with the Indian Railways for setting up this factory in 2013. The unit will make one lakh pieces of wheels, 80% of which would be sold to the Railways, Mr. Madhusudhan said.

In its first phase, the unit will produce wheels for locomotives and high-speed trains. RINL has also signed one agreement each with Cement Corporation of India for setting up a 2 million-tonne per annum (MTPA) fly ash plant and with Kudremukh Iron Ore Corporation for a 1.2 MTPA pellet plant.