Kolkata: Tata Metaliks has lined up an investment of Rs 40 crore for its second blast furnace in Kharagpur.

Addressing an analysts’ meet, T Mukherjee, chairman, said the second blast furnace will have a capacity of one lakh tonne per annum and, accordingly, the production capacity, in addition to existing mini blast furnace, will increase substantially.

The company’s production, after the new blast furnace is commissioned, will be 2.63 lakh tonne against the present 1.4 lakh tonne per annum. Tata Metaliks is making investments to ramp up the capacity of hot metal from 1.3 lakh tonne to 1.63 lakh tonne by November 2003.

Mukherjee said the company had plans to enhance its footprint in the southern and western parts of the country either through acquisition or greenfield projects.

The plan for inorganic route of growth also includes upstream arrangements for raw material supply and downstream projects for value added products.

Tata Metaliks will also evaluate the option of setting up a coke oven battery in the near future. The company currently imports coke from Australia and the prices of coke were expected to appreciate further.

The company has forayed into the international market by exporting its foundry grade pig iron in South East Asian countries and niche products in other parts of the world. Exports would be a thrust area for Tata Metaliks in the future.

Harsh K Jha, managing director, said exports will account for 16-18 per cent of the company’s turnover by 2005-06. In 2002-03 exports accounted for 9 per cent, which was expected to grow to 14 per cent by the end of the current financial year.

Meanwhile, the company is looking at de-commoditise pig iron. The company was already customising pig iron, which the MD described as a step in the direction of de-commoditising the product.

At present, 28 per cent of the company’s products is being customised and the target is to achieve 50 per cent by 2007.

Mukherjee said many of the products already have a definite identification and in the next one and half years, the products will be branded.