Special alloys maker to tap emerging opportunities in aerospace and nuclear power
Hyderabad-based Mishra Dhatu Nigam Ltd (Midhani), a special alloys maker for the defence and strategic sectors like atomic energy, space and power, is on a drive to expand its production capacity four-fold in the next three years.
The company has embarked on a R700-crore, phased modernisation and expansion programme to enhance its production capabilities.
The defence PSU, which has crossed the R500-crore turnover mark last year, is set to explore opportunities in the aeronautics and power sectors from next year.
?The first phase of the ongoing expansion programme is expected to be completed next year. Three major equipment, including a melting furnace and the forge press, will be in place by the end of this year. We are procuring these at a cost of R200 crore,? M Narayana Rao, chairman and managing director, said. The final equipment is a R500-crore plate rolling mill, which would be in place in the next three years.
The corporation has taken a strategic decision to contribute to the global energy sector by developing new high temperature, critical alloys for advanced ultra super-critical thermal plant. Midhani has been identified by the Institute of Plasma Research, Ahmedabad and IGCAR, Kalpakkam, for developing reduced activation ferritic martensitic steel used in the International Thermo-Nuclear Experimental Reactor programme.
Further, as part of diversification, Midhani is concentrating on developing photovoltaic solar silicon and rare earth permanent magnets for use in emerging critical applications in the energy sector. With this, Midhani has joined the select band of global producers producing third generation aluminium-lithium alloy for critical aerospace applications.
Rao says that the opportunities in the defence and other strategic sectors are huge as the estimated demand for special alloys is about 4,000 tonnes annually. These alloys can withstand high temperature.
According to Rao, Midhani has developed a special nickel-based super alloy for the power sector, which can be used in boilers and turbines. ?We are jointly trying out this material with BHEL and NTPC on a pilot basis. This material is intended for ultra-super-critical power units,? he said.
After the expansion, Midhani will foray into the aeronautical sector with supplies of special nickel and cobalt-based super-alloy that can go into the manufacture of engines and other aircraft parts.
?Relying on our R&D to manufacture various materials for strategic sectors, our manufacturing capacity will be enhanced from 2,000 tonnes to 8,000 tonnes. We want to make Midhani as the Material Bank of the country,?? Rao said.
The current order book size is to the tune of R1,000 crore, to be executed over three years. ?We will be adding more products and more alloys to our existing portfolio. Besides, we will increase investments as we have got R100 crore from the government by equity and loan,?? he said. Post-expansion, by 2015, there will be a four-fold increase in the company?s production and turnover, Rao said.
