Fabex Steel Structures Inaugurates Second Manufacturing Unit Near Hyderabad, Boosting Capacity by 50,000 Tonnes

Fabex Steel Structures has officially inaugurated its second manufacturing facility located in Chityal, near Hyderabad. This significant expansion involved an investment of ₹120 crore and covers an area of 40 acres. The new unit is expected to add 50,000 tonnes to the company's annual production capacity, increasing its total capacity to one lakh tonnes across its two plants, the other being in Vijayawada.

Fabex Steel Structures specializes in the design, detailing, fabrication, and installation of pre-engineered buildings and steel structures. The company's existing plant in Vijayawada currently caters to both domestic and export markets.

The company's future expansion strategy will focus on adopting advanced automation, enhancing throughput, and diversifying its product range. Fabex Steel Structures plans to invest an additional ₹100 crore over the next two to three years to further bolster its manufacturing capabilities and drive innovation, as stated by Venu Chava, Co-Founder and Managing Director.

With a current turnover of ₹463 crore, Fabex employs 400 people. It aims to double its workforce to 800 as operations scale up. The company has set an ambitious target of achieving ₹1,000 crore in revenue within the next three years, supported by a strong client retention rate of 70% and an expanding global presence, according to I V Ramana Raju, Co-Founder and CEO.

Impact: This expansion significantly boosts Fabex Steel Structures' production capabilities, positioning it for substantial revenue growth and increased market share. The investment reflects confidence in the growing demand for pre-engineered building solutions and supports India's manufacturing sector by creating jobs and enhancing industrial output. The focus on automation and diversification suggests a strategic move towards greater efficiency and innovation. Rating: 7/10.

Difficult Terms: Pre-engineered buildings: Buildings constructed from factory-made components that are transported to the site and assembled. This method allows for faster construction, cost efficiency, and consistent quality. Throughput enhancement: Improving the rate at which a manufacturing system produces goods or services. It involves optimizing processes to increase output and efficiency. Product diversification: Expanding a company's range of products or services to enter new markets or reduce reliance on existing offerings.