Sangam Group invested Rs 500 crore in Mahalaxmi TMT, its steel venture company.
Mahalaxmi TMT commissioned a 240,000 tonne per annum steel plant at Devali, near Wardha in Maharashtra. The plan would produce mild steel billets through induction furnace route and it would use the latest slit rolling technology for producing TMT bar.
Slit technology is a method of producing steel bar wherein at least two individual bars are rolled at the same time, without re-rolling. TMT bars are used in housing and construction sectors.
The company can realise considerable increase in the production capacity of rolling small-sized bars through this technology.
Following completion of the first unit, Mahalaxmi TMT is implementing a backward integration project for making sponge iron using low-grade iron ore fine.
It plans to install seven kilns based on direct-reduced iron (DRI) technology for making sponge-iron. The company will save on operational cost and increase in yield by making sponge iron directly from iron ore fines without doing the pellet process.
The firm plans to ramp up the billet capacity to 336,000 tonne a year from 240,000 in the second phase. It would also set up an 800-tonne-a-year DRI plant that will use ore fines and five lakh tonne a year of TMT bars and channels capacity.
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