SAIL, Hindustan Prefab Ltd join hands for downstream value addition
merisarkar news service, New Delhi, January 19, 2011
SAIL-HPL join hands
Maharatna Steel Authority of India Limited (SAIL) on Thursday signed a memorandum of understanding (MoU) with Hindustan Prefab Limited (HPL), a PSU under the Ministry of Housing & Urban Poverty Alleviation, for jointly exploring the techno-economic viability of carrying out the business of prefabricated structures in steel and cement.
The MoU was signed by SAIL's Executive Director (Corporate Planning) and the Financial Advisor & Chief Accounts Officer of HPL in the presence of SAIL Chairman C. S. Verma, Jaiveer Srivastava, CMD HPL and Directors and senior executives of both companies.
The MoU is the first step by SAIL and HPL towards jointly participating in projects using prefabricated structures in steel and cement. The prefab sector in India is at present highly unorganised and has huge growth potential. The MoU signed today envisages a study to be conducted into the techno-economics of the prefab sector along with its market potential.
Demand from this fast-growing sector is growing @ 10-12% CAGR. The prefab industry provides an excellent opportunity to SAIL for downstream value addition.
Speaking on the occasion, SAIL Chairman C. S. Verma said, "Stress on creating basic infrastructure through prefab material is of great significance in today’s scenario of high cost of raw materials. We must try to find more avenues for use of prefabricated material."
HPL CMD J. Srivastava commented that he was delighted with his company's association with SAIL and looked forward to strengthening the bond through the provisions of the MoU.
