Maruti Ispat & Pipes to invest Rs 2K cr in adding 6 lakh mtpa capacity in 5 years

HYDERABAD: Maruti Ispat & Pipes Private Limited (MIPPL), one of the largest secondary steel makers in south India, plans to invest Rs 2,000 crore in expanding capacities by 6 lakh metric tonnes per annum (mtpa) over the next five years.

The Hyderabad-based company, which currently makes sponge iron, electric resistance welded (ERW) steel pipes and billets at its 300-acre integrated facility at Mantralayam, Kurnool in Andhra Pradesh, is looking at expanding capacities from the existing 1.43 lakh mtpa of ERW pipes by another 3.5-4 lakh mtpa, a top company official said.

In addition to this, MIPPL, which is part of the also plans also set up two greenfield facilities – an integrated plant either in Odisha or Chhattisgarh and a standalone pipe mill in Ghaziabad, Uttar Pradesh, which will target the north market, MIPPL CEO Abhishek Agarwal said.

“At Mantralayam we will be adding 2.5 lakh mtpa ERW pipe capacity and a 1.5 lakh mtpa capacity for value added steel products like galvanised pipes, galvanised hot dip iron and galvalume pipes. We will also set up 2.5 lakh mtpa capacities in the two new plants to take total capacities to around 7.43 lakh mtpa,” he explained.

The company plans to raise the funds for the expansion through internal accruals, initial public offering as well as debt, he said, adding that the expansion alone will cost around Rs 1,200 crore and the rest will go into plans to diversity into sectors such as railways and defence as part of its strategic growth plans.

“We are looking at raising around Rs 400 crore via an IPO in the next financial year to fuel our expansion and diversification plans. By 2026 we should be a listed company,” he added.