Lighting solution provider Surya Roshni announced that its arm Surya Global Steel Tubes (SGST) is all set to pump Rs 400 crore to build a greenfield steel pipe manufacturing plant in Bhuj, Gujarat. 

According to the sources, establishing of the new plant is part of the company's strategy to provide to demand steel pipes in the oil and gas sector. 
 
The sources further revealed that the proposed plant will be equipped with an initial capacity of two lakh metric tonnes and is expected to be commissioned by December next fiscal.

While commenting on the occasion, Mr. Jaiprakash Agarwal, Chairman and Managing Director of Surya Roshni remarked, “We are targetting a sales of Rs 2,000 crore in the first year of operations of the plant. The company will export 80 per cent of the production, while the rest will be for the domestic markets.”

According to the company officials, the funding of the investment will be done through internal accruals and debt. 
 
At present, SGST has a steel pipe and tubes manufacturing unit at Bahadurgarh in Haryana with an annual capacity of three lakh metric tones.