Vesuvius shares rise over 2% after firm commissions flux plant in Visakhapatnam
Upstox
2 min read • Updated: April 19, 2024, 3:12 PM
Summary
Vesuvius inaugurates a state-of-the-art mould flux manufacturing facility in Visakhapatnam to meet the escalating demand in steel production. With plans to bolster investment in India, up to ₹1,000 crore, Vesuvius underscores its commitment to innovation and customer satisfaction.
Shares of Vesuvius rose 2.2% in afternoon trade after it said it had started a modern mould flux manufacturing facility in Visakhapatnam.
This facility is unveiled to cater to rising demand for flux, crucial in the steel production process.
Vesuvius India is owned by UK-based Vesuvius Group Ltd. The company has four manufacturing plants, based largely in east India. Over the past five years, the company has doubled its revenue and seen a nearly threefold rise in profits.
“We are delighted to inaugurate our new state-of-the-art Flux manufacturing facility, a testament to our relentless pursuit of innovation and our commitment to meeting the needs of our customers and the market,” Patrick Andre, Chief Executive of Vesuvius Group Ltd, said.
The company executive said that given Vesuvius India’s strong growth trajectory, the company has decided to double its capex.
“We envisage surpassing our earlier stated investment plans of Rs 500 crore to reach close to ₹1,000 crore outlay over the next few years," said Andre.
Vesuvius has been actively investing in India, expanding its existing plants and establishing three new greenfield manufacturing facilities, which will collectively add 250,000 tons per annum in capacity. The flux plant is the first of these new facilities scheduled to start operations in 2024.
“India has always been a strategic market for the group - we were the earliest refractory manufacturer globally to recognize the potential of this dynamic market and co-incidentally completed 30 years of starting our first manufacturing plant in India this year,” Biswadip Gupta, Chairman of Vesuvius India, said.
Gupta said the company’s investment in manufacturing capabilities in India will enhance its competitive position and contribute to the socio-economic development of the communities where it operates.
On overall investment plans, Nitin Jain, Managing Director of VIL, said the company will continue to make investments ahead of time to expand its capacity and product portfolio. “This plant represents a significant step forward in our journey towards sustainable growth and reinforces our position as a leader in the industry,” he said.
Vesuvius shares are up about 110% over the past one year, outpacing the benchmark NSE Metal index, which is up 53% over the same period.