By Debarati Roy/Bloomberg
Mumbai: Uttam Galva Steels Ltd., India’s second-largest maker of galvanized steel, will raise prices of all its products because of rising demand from construction companies and makers of automobiles and home appliances.
Prices will be raised by as much as Rs5,000 a metric tonne ($116), finance director Ankit Miglani said. Rates for long- term supply contracts are being negotiated, he said.
Sales at the nation’s biggest carmakers Maruti Udyog Ltd and Hyundai Motor Co. and their local rivals are increasing as rising incomes make cars and home appliances more affordable. India, Asia’s fourth-largest economy, likely grew 9.2% in the year ended 31March, the most in almost two decades.
Galvanized steel accounts for 80% of the company’s revenue and cold-rolled steel brings in the rest. The company sells its products to automakers including Mahindra & Mahindra Ltd, Bajaj Auto Ltd and Tata Motors Ltd.