Arjas Steel, previously Gerdau Steel, announced a Rs 610 crore capital expenditure to boost its annual production capacity to 5.5 lakh tonne, an increase of more than 37.5% above its current capacity across its Andhra and Punjab facilities.
The business runs two facilities: Tadipatri in Punjab’s Mandi Gobindgarh and the Andhra Pradesh area of Anantapur. While the Punjab facility, which it purchased in November 2020 for roughly Rs 100 crore, produces 1 lakh tonne annually, the Andhra plant now has a capacity of 3 lakh tonne.
Of the total capex, around Rs 350 crore will go into the Tadipatri plant expansion and the rest Rs 260 crore will go into the Punjab unit, Sridhar Krishnamoorthy, managing director said in a statement.
The company said the capacity additions will be completed in 2025.
