With steel makers looking at ways of reducing the cost of production, Electrotherm India Ltd a leading technology solution provider in foundry and steel industry is hopeful of supplying at least 25 medium frequency induction melting furnace for steel melting application within this year after it successfully commissioned the first 40 tonne furnace to a Nagpur based client last month that is expected to bring down cost of production by INR 800 to INR 900 per tonne.
EIL's engineering and projects division has successfully commissioned the world's largest medium frequency induction melting furnace for supplying steel billet to Mahalaxmi TMT Private Ltd. The 40 tonne furnace with capacity of production of around 160,000 tonnes per annum has commenced commercial production already.
Mr Avinash Bhandari MD of EIL said that "The 40 tonne medium frequency induction melting furnace is more efficient vis a vis the traditional blast furnaces and save the cost of production up to INR 800 to INR 900 per tonne. We are expecting to supply at least 25 such furnaces this year with steel makers now keen on reducing the cost of production."
He added that of the net 60 million tonne installed steel capacity in the country, nearly 25 million tonnes come from induction furnaces and remaining are blast furnaces that are suited for large scale production. EIL's customers are mini and micro steel plants. It currently has over 2650 installations in the country and around 260 installations overseas.
Mr Bhandari said that "This 40 tonne induction furnace is a new product that is not available with our competitors and could definitely impact the division profitability in a positive manner."
The company is aiming to grow the revenues from its E&P division to INR 350 crore in 2010-11 from INR 210 crore in 2009-10.