In order to become one of the top ten wire and wire product makers in the world, Kolkata-based Ramsarup Industries is all set to make an investment of Rs 1,500 crore by the next two years.

The company would raise funds from internal accruals, debt and private equity.

Ramsarup Industries has also got final nod from shareholders in a High Court convened meeting held in Kolkata on May 7th, 2008, for merging its group company Ramsarup Lohh Udyog Ltd (RLUL) with itself.

The fair exchange ratio has been fixed at 2 equity shares of Ramsarup Industries for every five equity shares of Ramsarup Lohh Udyog Ltd. The merger will be effective from April 1, 2007.

RLUL is establishing an integrated steel plant in Kharagpur, which is expected to start commercial production soon. The said plant will be capable of meeting up the entire requirement of steel billets of RIL.

Ramsarup Industries’ Durgapur plant, with a capacity of 55,000 tonnes, has already started making low-relaxation, pre-stressed concrete (LRPC).

By the next two years, the overall production capacity of the Durgapur plant will be increased to 4 lakh tones.

Moreover, the company has also decided to add about 36,000 tonnes of stranded LRPC wire each year for the next three years, together with other value-added products including steel fibre, staple wire, hose wire, among others.

Ashish Jhunjhunwala, chairman and managing director, Ramsarup Industries, stated, “In order to achieve complete synergy, we are aggressively pursuing our goal to be among the top ten wires and wire product manufacturers in the world in the next three years, with our own captive raw material and strong presence in the infrastructure space.”

The company would also set up a new 225,000 per annum capacity steel plant at Kalyani. Besides, the company is seeking overseas as well as domestic acquisitions.

Mr. Ashish Jhunjhunwala also said that the company would invest around Rs 200 crore in order to swell the Durgapur Wire manufacturing plant, Rs 600 crore for establishing the steel plant and the remaining Rs 700 crore will be spent on setting up a 7,00,000 tonne per annum billet plant, 20 mw power plant, blast furnace, sinter plant, DRI plant and a rolling mill at Kharagapur.

The company owns two iron ore mines in Orissa with combined reserves of about 47 million tonnes.

Mr. Jhunjhunwala also that mining would start from October 2008. As of now, Ramsarup the company is obtaining iron ore from the market.

Ramsarup has adopted Balasore Minerals Co having iron ore, limestone and dolomite mines situated in Orissa. This will ensure regular and long-term availability of raw material to steel producers – M/s. Ramsarup Lohh Udyog Ltd.

The group anticipates a 40% jump in its bottom line in 2007-08 as against a net profit of Rs 43 crore last year on a turnover of Rs 1306 crore.