The Ruias-led Essar Steel said Wednesday it plans to pump in Rs 1,000 crore (Rs 10 billion) in a span of three years for setting up service centres across India, North America and the Middle East, to cater to specific steel requirements of the auto, white goods and SME sectors.
"The investment is part of our strategy to be close to our customer. It will help the company achieve several goals simultaneously," Essar Group Chairman Shashi Ruia said after inauguration of the company's new service centre in Bahadurgarh, Haryana.
The 2.5 LTPA centre set up by the company at a cost of Rs 75 crore (Rs 750 million) will make steel as per specifications asked for by its customers in north India. It will also enable it provide small lots and customised deliveries for ready-to-use steel.
In all, the steel major intends to set up about 15-20 such centres with a cumulative capacity of 4.2 million tonnes per annum as against the present 2.5 MTPA.
The Rs 1,000 crore (Rs 10 billion) proposed for the project would include
the costs incurred on expansion of the company's existing service centres, Essar Steel Group CEO J Mehra said.
Essar's new facility, which is its fourth in the country after Hazira, Pune and Chennai, is backed by the company's 4.6-MTPA steel plant in Gujarat, which is being expanded to 9 million tonnes by 2010-11.
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