TMT bar maker to invest Rs 30 cr for expansion

G Gautam Reddy, CEO, isteel, who unveiled the new logo of the company said, “In India, the demand for the TMT bars steel is mainly driven by construction and infrastructure sectors. The consumption is rising at an average of 7.6% year by year.

In the Union Budget 2018, the total expenditure on infrastructure for the next fiscal will stand at Rs 5.97 lakh crore. This will create a demand for quality steel in construction and infrastructure sector. While the demand is well set, isteel with its significant expansion will continue to be benefited from the strong demand for high quality construction steel.”  

The company which has a factory in Gummidipoondi, primarily concentrates on the South Indian market, where Tamil Nadu accounts for 70-80 per cent of its sales. The demand for construction steel in the state is close to 1.3 lakh tonnes a month, while the demand in Chennai is about 75,000 tonnes a month. Reddy says, “The company will be investing about Rs 30 cr to bring about manufacturing efficiencies and removing bottlenecks, which will in turn set it on the path of doubling its capacity.” The expansion plan is to increase the dealer network across south India and make isteel a strong retail brand leader in south. Isteel has partnered with Ultratech cement and is the exclusive allied TMT bar product in the cement brand’s building solution concept stores (UBS) in Tamil Nadu.

Commonwealth gold medal-winning weightlifter Sathish Kumar Sivalingam was appointed as the brand ambassador of the company.