Mukand Limited, a leading specialty steel producer plans to increase its product prices by Rs 2,000 per tonne from June, on behalf of rise in raw material prices.

The company stated that it may further revise the product prices if the input costs continue to rise.

Earlier, in the start of the current financial year, Mukand has increased the price of alloy and stainless steel long products by Rs 6,000 per tonne.    

The company is presently working on the last phase of an expansion and modernization programme, that will take its annual steel manufacturing capacity to over 500,000 tonne per annum (tpa) from its current capacity of 300,000 tpa.

The company is aiming at a revenue target of Rs 4,000 crore (from Rs 2,222 crore in 2007-08) once the 500,000 tpa capacity is fully operational.

Apart from this, the Company is setting-up a 15 MW captive power plant at Ginigera, Karnataka which is expected to be commissioned in the third quarter of the year in progress.

Mumbai- headquartered Mukand, a part of the Bajaj Groups of companies has interests in steel, machine building, turnkey projects and infrastructure.

The company manufactures alloy, special and stainless steel long products, which find use in the manufacture of kitchenware, stainless steel for industrial applications, etc.

The company`s bottomline declined in the last financial year because of the rise in raw material prices such as costs of coking coal, iron ore and fuel oil.
Mukand Limited has posted an 83.60 per cent drop in net profit at Rs 5.93 crore for the quarter ended March 31, 2008, against Rs 36.15 crore logged in the same period last year.