Bhushan Steel Limited
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BSE Code:
500055
NSE Code:
TATASTLBSL
Business Profile
Business Profile
The Bhushan group took over a casting unit in Ghaziabad in 1987 and renamed it Bhushan Steels & Strips (BSSL). The company`s principal activity is to produce cold rolled, galvanised and special steel and strips. It also produce angles and wire rods. It caters to the automobile and white goods sector.
The company`s plants are located at Uttar Pradesh, Maharashtra and Orissa. It is India`s only CR steel plant with a line to manufacture CR coils & sheets up to a width of 1,700 mm, as well as galvanised steel coils & sheets up to width of 1,350 mm. The company currently has a capacity to produce 0.6 million mt per annum of cold rolled steel at Sahibabad works and 0.4 million mt/annum of cold rolled steel at Khopoli works. It also has a service centre at Sahibabad to ensure supplies to the large OEM customers.
The company`s products have established a strong presence in Myanmar, Dubai, Kenya, etc. and its customers include LG Electronics, Whirlpool and others. The company commands 11% market share in this specific product segment. It is the only player catering to lucrative niche markets in automobile and white goods sector. Ford and Honda Motors have recognized BSSL as a global resource center for their worldwide operations. The company has entered into a technical collaboration with world`s one of largest steel producers Sumitomo Metal Industries, Japan.
The company has plans of setting up of plant for manufacturing HR coils and billets to meet the requirement at Kolkata and Chandigarh, which will make the entire operations of the company fully integrated in 2007-08. It is also planning to put up an integrated steel plant of 3 million tonne capacity in near future to produce hot rolled coils (HRC) to meet the captive use for its group companies
The Orissa Government recently signed a final agreement with BSSL for setting up a 12.35 million tonne steel capacity in the state with an investment of Rs 229 billion.
Financials
The company reported a steep drop in standalone net profit for the quarter ended December 2008. During the quarter, the profit of the company declined 72.19% to Rs 207.40 million from Rs 745.70 million in the same quarter last year. Net sales for the quarter rose marginally 2.13% to Rs 10036.90 million, while total income for the quarter climbed marginally 1.59% to Rs 10064 million, when compared with the prior year period. It posted earnings of Rs 4.88 a share during the quarter, registering 72.21% decline over previous year period.
Recent Developments
30-JAN-09
The company has acquired 9.5% stake in Orissa Sponge Iron & Steel from Chandra family, promoter of Unitech, for about Rs 230 million, as per media reports.
25-FEB-08
Bhushan Steel has inked two joint ventures (JVs) with Bowen Energy, Australia regarding exploration and commissioning of coal mines in Australia.
19-FEB-08
Bhushan Steel on Feb. 16, 2008 inked pact with Madhya Pradesh Trade and Investment Facilities Corporation (TRIFAC) for setting up of manufacturing facilities in the state of Madhya Pradesh for 1 MTPA Coke Oven Plant and 5 MTPA Cement Plant, with the total
investment of approximately Rs 30 billion in phases.
Future Plans
The company plans to set up a Integrated Steel Plant in the state of West Bengal, including slab plant, coke ovens and captive power plant etc. It also plans to set up a 6 million ton per annum integrated steel plant as an expansion of its existing plant being set up at Meramandali in Orissa.