A steel unit of a Sujana Group company in Nalgonda district of Telangana has been seized as part of the loan recovery process initiated by banks.
One of the 11 production facilities the company, Splendid Metal Products Ltd (formerly Sujana Metal Products Ltd) has in Telangana, Andhra Pradesh and Tamil Nadu, the unit is located in Chikatigudem, Kethepally mandal of the district. The action has cast a shadow on the livelihood of 130 persons employed at the unit.
According to sources, the action pertains to the recovery of around ₹1,300 crore loan by a consortium of banks. The unit, which is located about 130 km from Hyderabad on National Highway 65, was issued notices about three weeks ago and March 9 was set as the last date for responding to them. As of March 31, 2018, secured loans issued by banks total ₹1,227 crore. Figuring in the list of banks are Andhra Bank, Indian Bank, Indian Overseas Bank, Lakshmi Vilas Bank, Oriental Bank of Commerce, and Punjab National Bank.
A listed company, Splendid Metal Products was incorporated in May 1988 as Sujana Steel Re-rolling Industries Pvt Ltd. In March 1992, the name was changed to Sujana Steels Pvt Ltd and in April of the same year the company was converted into a public limited company. In November 2001, the company changed its name as Sujana Metal Products Ltd, which was changed to Splendid Metal Products Ltd in November 2016.
According to information available in public domain, the company, incorporated with an object to manufacture of steel re-rolled products, was promoted by Y.S. Chowdary, his associates and relatives. SMPL is engaging in the business of manufacturing and marketing value added steel products. It is categorised as a secondary steel producer in the industry.