MS Agarwal Foundries to set up Rs 1,200-crore steel rolling mill, sponge iron plant at Madhavaram in Andhra Pradesh

Leading supplier of steel MS Agarwal Foundriesis in the process of setting up a backward integration project for sponge iron and a steel rolling mill at Madhavaram in Kurnool district of Andhra Pradesh for Rs 1,200 crore.

"The new project is being funded through internal accruals and loans and will double the company’s manufacturing capacity for sponge iron and steel products. The capacity will go up to 0.55 million tonnes per annum from .22 MT per annum," the Hindu BusinessLine quoted MS Agarwal Foundries' Sales President Sujay Kumar as saying.

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"We have established ourselves as a leading steel supplier in Hyderabad and other major cities in the South with the plant in Hyderabad over the past decades and are now looking to serve South India with the new plant, which is strategically located and well-connected to serve the region," he said.

MS Agarwal Foundries expects to commission both the backward integration plant and the new mill at Mantralayam by March 2022. The firm has a steel mill at Toopran near Hyderabad and another unit at Madhavaram.

Sujay Kumar even expects the new steel unit to boost its volumes and revenues.