Ispat Industries Limited
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BSE Code:
500305
NSE Code:
ISPATIND
Business Profile
Business Profile
Ispat Industries (ISPATIND) is an integrated steel maker established in 1985. The company produces sponge iron, galvanised sheets and cold rolled coils, in addition to hot rolled coils. The company has integrated steel plants located at Dolvi in Raigad district and Kalmeshwar in Nagpur district, both in the state of Maharashtra.
The Dolvi complex is spread over 1,200 acres and houses a 3-million tons per annum of hot rolled coils plant, the Conarc process for steel making, and the compact strip process (CSP). This complex also has a 1.6 million ton per annum sponge iron plant, a 2-million ton blast furnace, a new 2.24 million ton per annum sinter plant and a 1,260 tons per day oxygen and a new electric arc furnace. The Kalmeshwar complex houses ISPATIND`s 0.5 million tons cold rolling complex, which also includes the galvanized plain/galvanized corrugated (GP/GC) lines and a color-coating mill.
Financials
Ispat Industries registered a profit of Rs 83.7 million for the quarter ended June 2007.
Net sales rose 8.48% to Rs 18,133.4 million for the quarter ended June 2007 from Rs 716.3 million for the quarter ended June 2006.
Total income rose 10.45% to Rs 18,592.6 million for the quarter ended June 2007 from Rs 16,833.7 million for the quarter ended June 2006.
The earnings per share (EPS) of the company stood at Rs 0.09 for the quarter ended June 2007.
Recent Developments
10-DEC-07
Steelmaker Ispat Industries and UK-based Stemcor formed a joint venture (JV) to set up a coke oven plant near Mumbai at an investment of Rs 9 billion.
29-OCT-07
Ispat Industries entered into a memorandum of understanding (MOU), on Oct. 27, 2007 with M P Trade & Investment Facilitation Corporation. In terms of the MoU, upon allotment of coal block, the company intends to make a total investment of about Rs 15 billion through a special purpose vehicle (SPV) company, to be formed at an appropriate time, for setting-up coke oven battery plant of 1 mtpa, coal washery and beneficiation plant of 1.05 mtpa and pit head power plant of 150 mw in Madhya Pradesh.
26-JUL-07
Ispat Industries is planning to pump in nearly Rs 21 billion by 2009 to ensure sustained profitability and to seek growth opportunities. The company is planning to raise USD 500 million through different financial instruments including external commercial borrowings and foreign currency convertible bonds to fund four projects costing Rs 21 billion. These projects involve a 1-million ton coke oven plant in Dolvi, Maharashtra and a 45-million tons per annum pellet plant in Visakhapatnam at an investment of Rs 5 billion.
05-JUN-07
Ispat Industries entered into a revised MoU with the Government of Chhattisgarh for setting-up a coal-based 1,200 MW power project. The proposed power project involves an investment of around Rs 53 billion.
Future Plans
ISPATIND is planning to scale up its capacity at Dolvi to 5 million tons per annum at an investment of Rs 50 billion. This expansion plan includes setting up a captive power plant of over 10 MW and revamping its port facility for easier access to shipments. The company also aims to complete its vertical integration process, increase the proportion of high-grade and value-added steel products in its product mix and leverage the advantage the modern design and the size of the facilities offers.
The company is also in the process of setting up an iron ore pellet plant at Visakapatnam. This plant is likely to have an annual capacity of 3 million tons. It would cost around Rs 8 billion and is expected to be completed in 30 months.