Viki Industries, the makers of isteel TMT bars, is planning to double production capacity in 18 months and has earmarked ₹30 crore for the purpose.
“We will increase our production, as we are running at full capacity,” said G. Gautam Reddy, CEO. “The expansion will be completed in 18 months.”
The TMT bar manufacturer has two units — one at Naidupet in A.P. to make billets and a modern rolling mill at Gummidipoondi, near Chennai, to make finished products. It has an installed capacity of 60,000 tonnes per annum, that would double to 1.2 lakh tonnes. Last year, the firm posted a turnover of about ₹250 crore and is eyeing a doubling of revenue, post-expansion. The firm has invested ₹110 crore in the plants over the last two years. Mr. Reddy said ₹30 crore more would be spent on phased expansion.
Funds would come from internal accruals and equipment finance, he said.
While the expansion is being carried out the rolling mill to bring out finished product, the company would source the main raw materials from five or six places such as Bellary, Gummidipoondi, Visakhapatnam and Odisha as the price differential is very less.
About the market share, Mr. Reddy said they are present only in the southern States having strong position in Chennai. “We have 5% -6% market share and it will reach 16% after the expansion, for which we are doubling the distributors,” he said.
On Tuesday, the company introduced renowned weight lifting champion and Commonwealth Games Gold medalist, Satish Kumar Sivalingam as its brand ambassador and also unveiled brand identity.
