Midhani expects upcoming facility to open exports (US)

Share on Facebook0Share on Google+0Tweet about this on TwitterShare on LinkedIn0Pin on Pinterest0Email this to someonePrint this page

Midhani 002

By next year November, the company expects its capacity to more than double from the existing 6,000 tonne with the new plant up and ready

Mishra Dhatu Nigam Ltd (Midhani), working under the aegis of Defence ministry, expects its upcoming Rs 200-crore manufacturing facility here to open export opportunities in the areas of ferro alloys, advanced ultra-super critical alloys in the power generation. “By next year November, with the commissioning of the new plant, our capacity will more than double from the existing 6,000 tonne. The fresh capacity allows us to do a business of Rs 1,500 crore. Consequently, it opens a window of opportunity for exports,” said M Narayana Rao, chairman and managing director, Midhani. The company clocked sales of around Rs 550 crore last year with a capacity utilisation of 40-55 per cent. For the current financial year, it expects this to touch Rs 600 crore. Its customers include space sector, defence, atomic sector and civilian needs. “We are in the process of strengthening the research and development (R&D) of future high-temperature alloys,” said Rao. The public sector undertaking (PSU) had recently developed super alloys like 617cc, 740cc in this category. For the next two years, it had earmarked an expenditure of Rs 25 crore. “Working as a PSU enterprise, I have very little flexibility to commit huge allocations here,” added Rao. It now depends on imports for procuring essential key inputs like nickel, chromium, molybdenum and titanium. However, for aeronautical grade titanium, the sponge plant set up by the Kerala Metals and Minerals Corporation, with the funding support from the Defence Metallurgical Research Laboratory, a research unit of DRDO and the Indian Space Research Organisation (Isro), would help Midhani achieve indigenous capability, he said. “The sponge from here is undergoing aeronautical standards qualification by us for mould development, and it may take another 8 months for completion,” said Rao. Similarly, for Hafnium and Niobium capabilities, it was working with the Isro. Last year, it made a profit of Rs 117 crore. It had been paying a dividend of Rs 37 crore each year for the last two years to the Union government. At the 10th edition of its annual Customer Meet on Friday, Midhani announced unleashing a ‘Corporate Plan’ as early as next month to closely monitor its customers’ requirement, shortening the delivery deadline and payment procedures. It also announced increased interaction with them for achieving greater product quality and service standards, by focusing on key aspects of time, research and customer service. “We want to convey the message- design your own product with Midhani,” said DK Likhi, director – production and marketing, Midhani.

Source : Buisness Standard

Posted in Strategy.

Leave a Reply

Your email address will not be published. Required fields are marked *