Ispat Industries ltd.

[Dhananjay]

Ispat Industries Limited (IIL) is one of the leading integrated steel makers and the largest private sector producer of hot rolled coils in India. Set up as Nippon Denro Ispat Limited in May 1984 by founding chairman Mr M L Mittal, IIL has steadily grown into a Rs 9,400-crore company, assuming its position as flagship of the reputed Ispat Group. A corporate powerhouse with operations in iron, steel, mining, energy and infrastructure, the Group today figures among the top 20 business houses in the country.

Headquartered at Mumbai, IIL employs a total of 3000 people and is the leader in the national speciality steel market. The company's core competency is the production of high quality steel, for which it employs cutting edge technologies and stringent quality standards. It produces world-class sponge iron, galvanized sheets and cold rolled coils, in addition to hot rolled coils, through its two state-of-the art integrated steel plants, located at Dolvi and Kalmeshwar in the state of Maharashtra.

The sprawling 1,200 acres Dolvi complex houses the 3 million tonne per annum hot rolled coils plant, that combines the latest technologies - the Conarc process for steel making and the compact strip process (CSP) - introduced for the first time in Asia.

The complex also has a 1.6 million tonne per annum sponge iron (DRI) plant, which was commissioned in 1994 as the world's largest and most efficient gas-based single mega module plant. Moreover, the Dolvi complex is home to a 2 million tonne blast furnace and also boasts a mechanised multi-functional jetty situated nearby, that facilitates the automation of raw material handling. A new 2.24 million tonnes per annum sinter plant, a 1260 tonnes per day oxygen and a new electric arc furnace have also been commissioned at IIL Dolvi.

Ispat is the only steel maker in India and among a few in the world to have total flexibility in choice of steel making route, be it the conventional blast furnace route or the electric arc furnace route. Its dual technology allows Ispat the freedom to choose its raw material feed, be it pig iron, sponge iron, iron ore, scrap or any combination of various feeds. It also has total flexibility in choosing its energy source, be it electricity, coal or gas.

The Kalmeshwar complex houses Ispat's 0.4 million tonnes cold rolling complex, which also includes the galvanized plain/ galvanized corrugated (GP/GC) lines and India's first colour coating mill.

Technology and innovation have always been the cornerstones of IIL's quest for excellence and these state-of-the-art plants facilitate the company's mission to attain and sustain market leadership, through technological and product superiority.

The company's strengths lie in its integrated process management, knowledge management and control systems. And its seamless supply chain management systems further the efficient use of raw materials, while its staff of highly skilled engineers, technicians and managers with specialised domain knowledge, ensure the choice of the relevant technology and the ability to produce international quality products at a competitive price.

In line with its vision for the future, IIL is expanding its HRC capacity to 3.6 million. Moreover, it 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.

With investments of over US $2 billion, IIL is the seventh largest Indian private sector company in terms of fixed assets. It aims to consolidate its market leadership in the national specialty steel market by capitalising on the proximity of its manufacturing facilities to major consumers of flat steel products in Maharashtra, while increasing its presence in international markets by using its convenient port location.

In the short span of time since its inception, Ispat Industries has steadily raised the bar - in terms of its relentless pursuit of technological advancement, unwavering focus on innovation, strident emphasis on quality products and its constant initiatives aimed at ensuring customer satisfaction. As it rapidly forges ahead on all these fronts, IIL has successfully reinforced its position as market leader, while simultaneously making technological breakthroughs and setting even higher standards for itself.

from http://www.ispatind.com/ispat_today.htm

[Dhananjay]

The Indian steel industry could likely see an impact on one part, mainly on the long steel segment, which has products used in the
construction industry. The financial crisis in Dubai could further delay construction activity, which had come to a halt since early 2008 after a crash in property prices, said industry executives.

According to Steel Authority of India (SAIL) executive director (commercial) Sushim Banerjee, “Dubai is not a large market as far as exports are concerned. But steel companies do supply construction grade steel in Dubai through construction majors like L&T and BHEL. The financial problems in Dubai may have some impact on future steel purchases.”

Shares of steel companies were mostly down with JSW falling the maximum, by 3.6% to Rs 945 while SAIL fell 0.5% to Rs 190.90; Tata Steel was down 0.2% at Rs 545 and Ispat Industries fell 2.7% at Rs 19.20.

Some of the other sectors of the steel industry that could likely be affected is the line pipe industry, which makes pipes for transportation of oil from refinery to consuming centres. Since the pipes have to be technically precise, many Indian companies have service centres near to their customers so that the cost of shipping the large pipes is reduced.

The line pipe making companies include Man Industries, PSL, Welspun Gujarat Stahl Rohren and Jindal Saw.

Some feel the impact of the crisis may not last long. “Steel supply to Dubai had anyway dropped in the last few months due to an overall slump in the real estate market,” said Ispat Industries director (finance) Anil Surekha.