Date:06/08/2005 URL: http://www.thehindubusinessline.com/2005/08/06/stories/2005080602180200.htm

Back Surana Ind expects Rs 10-cr saving from new wind farm

M. Ramesh

Chennai , Aug. 5

SURANA Industries Ltd expects to save at least Rs 10 crore a year in power costs, thanks to its recently completed 12-MW wind farm.

The wind energy project, expected to start generating power from September, was put up at a cost of Rs 73 crore, company officials told Business Line. Surana Industries produces construction steel from its 1.10 lakh-tonnes-a-year facility in Gummidipoondi, near Chennai. According to the company's Director-Finance, Mr V.M. Swami, the plant consumes about 4 crore units of electricity every year and it is paying the Tamil Nadu Electricity Board Rs 4.67 a unit.

The Rs 73-crore capital expenditure was met through a Rs 55-crore term loan from banks. The rest came from internal sources.

The company had recently raised Rs 30 crore through a private placement of shares, at a premium of Rs 50 a share.

Meanwhile, the company has reported a doubling of net profit for the first quarter of the current year, compared with the same quarter last year. Net profit for the quarter rose to Rs 1.57 crore from Rs 60.86 lakh in the corresponding quarter last year — an increase of 158 per cent. In the full year 2004-05, the company's net profit was Rs 3.93 crore.

Turnover increased to Rs 151.53 crore from Rs 58.47 crore previously. In 2004-05, the company's turnover was Rs 489.70 crore.

Company officials say the future would be better more because of the introduction of a value-added product called Thermo Mechanically Treated bars. The TMT bars, used in construction, are bars heated and quenched in streams of cold water, which makes them harder.

Officials say that builders who use these bars will need to consume 17 per cent less steel.