BMW Industries Limited proposes to extend its presence in Downstream Steel products

BMW Industries Limited is planning to expand its business by establishing a manufacturing plant in Bokaro, in the state of Jharkhand, which is the second-highest steel-producing state in the country. The proposed project involves the development of a Downstream Steel Complex with an annual production capacity of 300,000 TPA of Cold Rolled Full Hard Coil/Sheet; 540,000 TPA of Galvanized Coil/Sheet, and 200,000 TPA of Color Coated Coils/Sheets. The project will be located at Bokaro, Jharkhand.

The total project cost is estimated at Rs. 803.47 crore, which will be funded through a mix of Internal Accruals and Debt. The Company already possesses the required land, which is designated for industrial use and will serve as the site for this greenfield project.

Strategic Advantages: This expansion will enable the Company to leverage its existing strengths in downstream steel processing and cater to the growing demand across the country. Additionally, the project's proximity to the Haldia/Kolkata port, located at a distance of approximately 300 kms, will facilitate access to global markets. The location also offers the advantage of being close to raw material sources, ensuring a steady supply chain. Furthermore, the Bokaro Industrial Area is a well-established industrial hub with adequate availability of resources, which will support smooth execution and operation of the plant.

Environmental Clearances: The Company has obtained the necessary Consent to Establish from the Jharkhand State Pollution Control Board.

Project Timeline and Execution: The Company possesses the requisite technical, commercial, and management expertise to execute this project efficiently. The project is expected to become operational in stages over the next 2 years, with the first plant slated to begin its commercial operations in FY26.

The Board of Directors believes that the proposed project will create long-term value for the Company and its stakeholders by strengthening its presence in the downstream steel processing sector and expanding its market reach. Further updates on the progress of the project will be communicated in compliance with applicable regulations.

Shares of BMW Industries Ltd was last trading in BSE at Rs. 44.13 as compared to the previous close of Rs. 42.89. The total number of shares traded during the day was 555022 in over 1527 trades.

The stock hit an intraday high of Rs. 44.99 and intraday low of 42.42. The net turnover during the day was Rs. 24282289.00.

Source : Equity Bulls

Keywords

BMWIndustries INE374E01021 DownstreamSteelProducts