On December 28, India-based stainless steel producer Varun Industries Limited (Varun) announced its intention of setting up an integrated, stainless steel complex at Village Rohat near Jodhpur in Rajasthan state of India. The initiative is part of the company's backward integration plan to be self sufficient in raw material supply and thereby improve its competitive edge.
The plant in question will be set up in two phases and will comprise facilities for making stainless steel flats and other high quality stainless steel and alloy steel products including rounds, angles, wire rods, channels, structurals and long products.
Accordingly, the first phase of the proposed project estimated to cost Rupees 2.3 billion ($49.44 million) and will have an annual capacity of 120,000 metric tons. The company will meet 35 percent of the finance requirements through its own funds and 65 percent through long term loans.
The company stated that it is confident that after it has met its own captive needs there will be a steady and growing market demand for its products contributing to its growth and profitability.