Despite the sluggish growth in key consuming sectors like construction and housing and also soft rebar prices, several secondary rebar producers in India are persisting with their expansion plans and new product launches, information collected by SteelOrbis shows.
Minar Group, based in the southern Indian state of Kerala, is expanding its rebar production capacity from 8,000 mt per month to 10,000 mt per month.
“The company wants to expand in the market of the neighboring state of Tamil Nadu and is investing $20 million to put up a new rebar production facility in the state across 15 acres of land and ready for production within 6-12 months,” Minar Group managing director Mohammed Shafi said.
Similarly, KAY2 TMT Limited, a new generation rebar producer is eyeing expansion of its rebar production capacity from 1 million mt per year to 2 million mt per year within the next two years.
“With the gradual revival of the economy and the unlocking of industries post Covid-19, the construction and infrastructure sectors have started showing signs of recovery in demand. Even the government has announced a huge push in agri-infrastructure, which will have a positive impact for us,” Sunil Agarwal, managing director of the company, said. “We have launched premium-branded rebar - Kay2Xenon - amplifying the brand identity and increasing our presence in more markets across the country,” he added.
Construction material manufacturer Maithan Steel Limited is in the process of an expansion project to double its capacities of rebar and billet production to 500,000 mt per year and 400,000 mt per year, respectively, scheduling its project to be completed in 2021.