core sector communique

SAIL Chairman Mr. C.S. Verma and HPL CMD Mr. J. Srivastava exchanging copies of the MoU, while Directors and senior executives of the two companies look on

SAIL signs MoU with Hindustan Prefab Ltd for downstream value addition

New Delhi: Maharatna Steel Authority of India Limited (SAIL) today signed a memorandum of understanding (MoU) with Hindustan Prefab Limited (HPL), a PSU under the Ministry of Housing & Urban Poverty Alleviation, for jointly exploring the techno-economic viability of carrying out the business of prefabricated structures in steel and cement. The MoU was signed by SAIL’s Executive Director (Corporate Planning) and the Financial Advisor & Chief Accounts Officer of HPL in the presence of SAIL Chairman Mr. C.S. Verma, CMD Mr. Jaiveer Srivastava, and Directors and senior executives of both companies.

The MoU is the first step by SAIL and HPL towards jointly participating in projects using prefabricated structures in steel and cement. The prefab sector in India is at present highly unorganised and has huge growth potential. The MoU signed today envisages a study to be conducted into the techno-economics of the prefab sector along with its market potential.

HPL, which has expertise in project management, production and marketing of prefabricated products, is engaged in mass housing, institutional building, infrastructure development and specialised projects with operations spread over 14 states. SAIL is the largest producer of steel in India with a wide product range that includes all the items required by the prefab sector, such as HR coils, plates, GP coils, structurals, coated steel sheets, etc. The total annual steel requirement of the prefab sector is estimated to be 700,000 tonnes. Demand from this fast-growing sector is growing @ 10-12% CAGR. The prefab industry provides an excellent opportunity to SAIL for downstream value addition.

 

Speaking on the occasion, SAIL Chairman Mr. C.S. Verma said: “Stress on creating basic infrastructure through prefab material is of great significance in today’s scenario of high cost of raw materials. We must try to find more avenues for use of prefabricated material.” HPL CMD Mr. J. Srivastava commented that he was delighted with his company’s association with SAIL and looked forward to strengthening the bond through the provisions of the MoU.