Prakash Industries Limited – an integrated steel and power making company is all set to start to come up with two pellet plants in Champa, Chhattisgarh, as per trade sources.
The plant has an existing sponge iron capacity of 1 MnT pa, steel billets of 1.1 MnT pa and finished steel capacity of 1.1 MnT pa. The company plans to augment its sponge iron capacity to 1.2 MnT by Sept’18.
The steel maker produces steel through coal based sponge iron route.
The company also has captive iron ore mines in Odisha and Chhattisgarh as a step towards backward integration. In its quarterly results announced for Q3 FY18, the company stated that it is awaiting final regulatory clearances for Sirkaguttu iron ore mine in Odisha, mining operations expected to start by Apr’18. The Kawardha iron ore mine in Chhattisgarh likely to be commissioned by Apr’19.
As per market sources report to SteelMint, the steel maker has planned to come up with two pelletizing units of 1.4-1.5 MnT pa each as a measure of backward integration. In the first phase, the steel maker will start operations at its 1st plant. And then in the 2nd phase another 1.5 MnT pa pellet capacity will be commissioned.
However the time line is still not certain for the commissioning of the pellet plants. Exact capacity of pellet plants could not be confirmed at the time of publishing this report.
India has an installed pellet capacity of around 90 MnT pa. Upcoming pellet plants will further add to the existing capacity.
Sales volume of semi-finished and finished steel grew by over 39% Y-o-Y – Amid steep rise in domestic steel prices, in Q3 FY18, sales volumes of semi-finished and finished steel recorded a growth of over 39% Y-o-Y.
Prakash Industries EBIDTA up in Q3 FY18 – The company recorded EBIDTA of 152 cr in Q3 FY18 compared to 124 cr in previous fiscal.
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