Bhushan To Establish Rs 100cr Unit

Chandigarh: The Bhushan Power and Stee has bought land in Ludhiana for the manufacturing unit. Bhushan Power and Steel is planning an investment of over Rs 100 crore at its new facility in Ludhiana. The company bought the premises of a sick unit in industrial area of Ludhiana to set up a manufacturing unit to cater to the industries in and around Ludhiana. The company hopes to commission the Ludhiana plant in one year. The company is also contemplating of setting up a unit of cold drawn welded tube (CDW) at Manesar. The company has a warehouse in 3 acre and needs another 4-5 acre to put up a manufacturing unit. It would require a capital outlay of about Rs 150 crore for a capacity of 50,000 tonnes per annum at Manesar.

The company also has five plants in Chandigarh industrial area. The new plant at Ludhiana, spread in 7.8 acre, would have a capacity of 120,000 tonne. The company was planning a plant in Punjab as it had an access to cheap raw material sourced from its plants in Orissa. Hot rolled coils and wider cold rolled coils would be used to manufacture components for industries, including cycle industry, located in Ludhiana and automobile units located in the region. The 4 per cent entry tax in Punjab will decrease the profits of the unit but the in-house availability of raw material would offset the entry tax.