Mumbai : The Rs 2,500 crore Bhilwara-based Sangam Group today announced that group has invested close to Rs 500 crore in its new steel venture; Mahalaxmi TMT Pvt. Ltd. The group has drawn a capex of Rs. 650 crore for its new venture. The group’s flagship company is Sangam (India), which is one the largest producer of polyester- viscose dyed yarn in the country.

Mahalaxmi TMT has recently commenced TMT bar production using the latest slit rolling technology, thereby establishing itself as quality player in the country. Slit technology is a method of producing steel bar wherein at least two individual bars rolled at the same time, without re-rolling. The technology allows a considerable increase in the production capacity of rolling small sized bars.

Further, the  Mahalaxmi TMT has also passed the IS-1786 test and has been awarded with the following certifications for all sizes of TMT bars including Fe-500, Fe-500D and Fe – 550D. Only  limited steel players in India have achieved this accreditation.

Mahalaxmi TMT is presently implementing a backward integration project for making sponge iron using low-grade iron ore fine, following the successful commencement of its first unit. The company plans to install  further 7 kilin based on Direct-reduced iron (DRI) technology  for making sponge-iron, thus becoming pioneer in making sponge from iron ore fine in India without doing the pellet process, which will save the input cost substantially and improve the yield.

Mahalaxmi TMT has set up an integrated steel plant at MIDC, Devali, near Wardha in Maharashtra. As per plans, the company has set up a manufacturing unit with a capacity of 240,000 MTPL for mild steel billets through induction furnace route. In the second phase, the company has ramp up the billet capacity to 336,000 MTPA. The company would also set up an 800 MTPL new technology DRI plant that will use ore fines. In addition, the company has also set up five lakh MTPA TMT bars, angles and channels capacity.

Commenting on these developments, Sangam Group’s Chairman, Mr. R. P. Soni said, “We have been always believe in the quality product and have proved that we can maintain the competency of our products and ensure that we will preserve the same forever. We are among the very few players in the industry with all the above certifications and we are proud of it. This will benefit to us in longer tunes to improve our realisation and establish our foot hold in the steel industry. ”