DS Group's Tripura steel plant to cash in on local demand
Debabrata Das
Recently in Agartala

The DS Group has decided to focus on the captive demand in Tripura for its steel business.
The group opened a steel plant in Agartala towards the end of last year for producing finished galvanised products, including steel corrugated roofs.
Corrugated roof
“People in the State are moving towards corrugated steel roofs to protect their houses against the heavy rainfall in the region. Now even boundary walls are being built out of corrugated steel sheets.
“This has created a healthy captive demand in the State and we are focussed on catering to this demand,” said Mr B.S. Mohnani, Business Head, Steel Unit, Dharampal Premchand Ltd. “We source our raw material, HR Coil sheets, from Korea, Japan and domestic producers such as Essar and SAIL,” he added.
Rising steel prices
However, within a few months of operations, the rising steel prices have forced the company to pass on the price increase to the customers.
“Since January, we have increased our prices by about 5-10 per cent. The way steel prices have shot up, we had to pass on the increase,” said Mr Mohnani.
Increasing raw material prices have also put pressure on the profitability of DS Group's rubber business. The group's subsidiary Abhisar Buildwell Pvt Ltd, which makes rubber thread, has had to cope with spiralling rubber prices.
Pressure on profits
“Profitability has been under pressure but we have managed to pass on 75 per cent of the increased prices to the customers,” said Mr Vishnu Sharma, Vice-President, Corporate Projects, Dharampal Satyapal Ltd.
But despite the pressure of increasing raw material prices, DS Group aims to earn Rs 70 crore from its rubber thread business in 2010-11.
The company is also spending Rs 20 crore to add two more production lines in its existing rubber thread factory in Agartala.
The factory provides employment to close to 250 people, 97 per cent of whom are locals.