The Group's joint venture and operations in India are of significant importance in achieving its strategic growth ambitions.

Overview

Performance from the Indian joint venture was disappointing during the year. In response to this, the Indian management team was strengthened including the appointment of Derek Randall as managing director. In addition, an overhead reduction programme was initiated, and completed, and a new business development and operational improvement programme was put in place which is expected to generate a substantial improvement in the future performance of the business.

Notwithstanding the challenges we faced in the year, there were some encouraging signs of operational progress across a wide range of areas including:

Mumbai Airport - air traffic control tower

  • Continually high quality products and short and consistent delivery times which are best in class and appreciated by clients.
  • Full design, fabrication and site construction services providing design and build projects to a wide variety of commercial and industrial sectors.
  • Technical predesign services to assist clients in choosing the best methods of construction to achieve budget, timescale, performance and aesthetic requirements.
  • An excellent safety performance across the business which is recognised, appreciated and expected by valued clients.
  • The successful completion of our phase two expansion, improving scope of supply and increasing capacity to approximately 60,000 tonnes per annum.
  • An increasing order book in excess of £40m.

Current and future projects

The demonstration of value through design, quality, speed, consistency and overall professional capability has led to the successful award of many prestigious projects from local and inward investors including:

  • A prestigious office project in Bangalore for NetApp, an American data storage company. This is designed to use structural steel for both the core and frame.
  • Our first school building in Mumbai for Ajmera.
  • Industrial projects including assignments for L&T, JSW Steel Limited, Reliance, OPG, Doosan and ITC.
  • Commercial projects for Raheja and Shakespeare.

The future

India remains primarily a concrete construction market which presents great opportunity for steel. The Indian market is now more buoyant after the recent change in government with market prospects forecast to improve. The addressable opportunity for steel fabrication in construction remains large and the prospects for conversion from concrete to steel are expected to improve. The market potential continues to be reaffirmed in all the market research that we carry out, both formal and informal.

Severfield and our joint venture partner JSW Steel are optimistic that the joint venture will improve performance and will grow through market demand overall improving and through market penetration as the benefits of total delivered value are appreciated by clients.

Annual capacity

60,000

tonnes

Site area

65 acres

Order book

£40m+

Current operations

The plant is based in Bellary, Karnataka.

Depending on mix, the capacity is now approximately 60,000 tonnes per annum following the successful implementation of our phase two expansion. The plant consists of:

  • A bit shop, two fabrication lines and a new bay to provide bespoke off-line heavy fabrication, tubular products, specialised multi-coat painting and further bogey line fabrication if required.
  • An Indisec line to produce sections from plate and to make cellular beams for steel design optimisation and improved floor to ceiling space.
  • Off-line facilities to make hand-railing, stairs and other ancillary products.
  • A second joint venture JSW Structural Metal Decking Limited (between JSW Severfield Structures and SMD Asia) which has a metal decking floor line, also in Bellary.

State-of-the-art plant

  • The plant has been designed to optimise product range, quality and productivity, as befitting the demands of the construction industry in India.
  • Incorporating state-of-the-art technology and processing equipment, the plant is managed and operated by highly qualified, experienced and dedicated people.
  • Bespoke plated products and Indisec are manufactured on-site at Bellary, Karnataka offering clients a range of benefits.
  • The plant currently utilises around 35,000 square metres of covered area, and 52,000 square metres of logistics and storage area. The site is on 65 acres, allowing future expansion.

Locations within India