New Delhi: Domestic pig iron maker, Tata Metaliks, is planning to invest around Rs 1,000 crore to build a 0.8 million tonne plant for manufacturing long products in Karnataka and has begun scouting for land in the state.

"On an invitation from the Karnataka Udyog Mitra, Tata Metaliks is seeking to establish a 0.8 MT plant in the state at an estimated investment of about Rs 1,000 crore," a company official informed.

The company would require assured iron ore linkage for the proposed plant and land area of about 500 acres.

"The state government has indicated to us that it will take care of our raw material needs and we feel encouraged," he said.

Tata Metaliks was planning to zero in on the site near the iron ore bearing areas of Karnataka and near railway network with adequate water supply.

However, the company's top brass is likely to take another 3-4 months to finalise the blueprint for the plant.

Tata Metaliks was incorporated in 1990 and began its commercial production in 1994. It is engaged in the business of manufacturing and selling pig iron and its plants in Kharagpur (West Bengal) and Redi (Maharashtra), have captive power plants.

"The company provides its customers with critical support across their entire business cycle - raw material, process and end product - helping it emerge as their business partners. It emerged as a one-stop shop for raw materials and end products for a large number of customers without adequate bargaining capacity across a multitude of vendors," the official said.

The opportunities being explored by the company are further expansion of pig iron business, forward integration into castings (including conversion through partner foundries) and steel, both through greenfield projects as well as merger and acquisition, he added.
Source : PTI