Posted In: Metal, Mining & Minerals, Sponge Iron

GPIL – Godawari Power & Ispat Ltd

Godawari Power & Ispat Ltd. (GPIL) a public Ltd. Co., formally Ispat Godawari Ltd (IGL), a pioneer constituent belonging to HIRA Group of Industries, Raipur, C.G. was incorporated in 1999 to set up an integrated steel plant with captive power generation under the guidance of visionary leadership of Mr. B. L. Agrawal, Managing Director.
GPIL is a flagship Company of Raipur-based Hira Group of Industries having dominant presence in the long product segment of the Steel industry, mainly into mild steel wire. Today, GPIL is an end-to-end manufacturer of mild steel wires. In the process, the company manufactures sponge iron, billets, Ferro alloys, captive power, wires rods (through subsidiary company), steel wires, Oxygen gas, fly ash brick and last but not the least iron ore pellets. GPIL is also awarded rights for Iron Ore Mining for captive consumption, as a result of which, the company has managed to traverse the entire value chain (raw material to final product) in steel wires and has now become a fully integrated steel manufacturer.
Hira Group of companies is a conglomeration of 13 companies across India, with more than 6000 employees under its wing. The Group is branched across India and expanding its operations around the world. By being driven in providing the customers with effective products and services, Hira Group combines its unparalleled experience in its operations, spread across seven business verticals of Steel, Ferro Alloys, Energy, Mining, Cement, Technology and Real Estate.

A fully backward integrated steel company with strong presence across the steel value Chain
Net Debt to equity Reduced to 1.4x from 3x; Target <1x

Products/Services

Pellets
Manufacturing high quality pellet with low phosphorous 2.1 MTP from GPIL Siltara, 0.6 MTPA from Ardent Steel Ltd a subsidiary of Godawari Power & Ispat Limited. Iron Ore Pelletization is an agglomeration process of the disintegrated Iron Ore fines into Iron ore Pellet which is suitable for the utilization of downstream process of Iron Making. The GPIL Process is the Ore ground to the required fineness through wet grinding process mainly by Ball Mills and the slurry is dewatered by pressure filtration to produce the Iron Ore Concentrate.The Iron Ore Concentrate produced is mixed with additives viz., Lime, Dolomite, Coke and Bentonite in suitable proportions to meet the required physical and chemical characteristics of the product produced.

Sponge Iron
Manufacturing 0.495 MTPA high quality Pellet and Iron Ore based Sponge Iron having low phosphorous leading to manufacture of ISI products. Coal based Sponge-iron is a metallic product produced through direct reduction of iron ore in the solid state .As such it is also known as Direct Reduced Iron (DRI). Iron Ore Pellet is used for reduction. After reduction of iron ore pellet the product resembles sponge because of pores left behind after removal of oxygen. As such it is called Sponge Iron. Sponge Iron is a substitute of scrap in steel melting.

Power
In Nov-2010 generation capacity was further enhanced by 20 MW with the addition of AFBC boiler having capacity of 100 ton/hr based on purely biomass fuel compulsion taking total present generation capacity up to 73 MW.

Billets
Diversity enriches any organization and enhances its collective capabilities. Consistency has been a hallmark of our product and We in our Steel Melting Shop convert the dream into reality by producing one of the finest quality of BILEETS in the Industry. This ranges from customized size of 110 x 110 which confirms to BIS standards 2830 & 2831 to the extended range of 200 x 250 thereby any size and composition with ease and balance.

Silico manganese
GPIL have a production capacity of 16500 MT per annum has a range of Silica Manganese in its belt. Silico Manganese is an essential component as an ingredient in the process of manufacturing various grades of steels. Silico Manganese, High Carbon Ferro Manganese, Medium Carbon Ferro Manganese, is covered under routine production planning. In addition the existing EAF has also successfully produced Pig Iron on market demand.

HB wire
These Mild steel wires (HB wires) is drawn through ‘cold drawing process’ using steel wire rod, deriving from excellent quality raw material of our own subsidiary company. Wire Rod is first D-scaled with the help of Double plain descaler rid of mild scale and then the cleaned wire rod is processed further to pass through a number of dies & drums with an average reduction of 25% to eventually achieve the targeted final product size and then it is taken in bundle shape of appropriate individual castings.

Sales Summary

Sales & Realization 2018-19 2018-19 2017-18 2017-18
Quantity (MT) Realization (/tons) Quantity (MT) Realization (/tons)
Iron Ore Pellet – GPIL 1,452,549 6,809 1,247,361 5,365
Iron Ore Pellet – ASL 560,831 6,053 584,459 5,050
Sponge Iron 140,218 19,736 228,469 16,678
Steel Billets 121,632 33,072 81,560 27,722
M.S. Round 79,099 38,741 74,813 32,457
H.B. Wire 134,558 40,667 116,562 34,015
Silico Manganese 7,664 67,612 10,891 64,632

Plants and Capacity

mt: Million tonnes

Plants and Mines

Production Summary

Production (in MT) 2018-19 2017-18 YoY(%)
Iron ore Mining 1,547,384 1,579,693 -2%
Iron ore Pellets – GPIL 1,933,250 1,841,050 5%
Iron Ore Pellets – ASL 572,673 590,876 -3%
Sponge Iron 460,008 439,139 5%
Steel Billets 298,418 197,596 51%
M.S. Rounds 182,088 142,101 28%
H.B. Wires 134,558 116,555 15%
Silico Manganese 10,536 13,772 -23%
Power – GPIL (units in cr) 44.02 48.35 -9%
Solar Power (Units in cr) 8.49 9.65 -12%

Revenue Segmentation

Particulars % to total turnover
Iron Ore Pellets 31.48%
Sponge Iron 17.92%
Steel Billets 10.64%
H.B. Wires 18.65%
M.S.Round / TMT Bar 11.42%

Financials

(In Rupees Crores) 2018-19 2017-18 2016-17 2015-16
Total Income 2,878.24 2,134.10 1,559.76 1,551.15
PBT 349.99 160.66 -78.01 -84.22
PAT 213.26 181.95 -77.44 -63.39
EPS 60.52 51.64 -23.64 -19.35
ROCE 24.10 8.41 -3.77 -3.85
ROE 19.79 20.97 -11.31 -8.37
Book Value 315.89 254.27 200.72 231.06
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by , created on July 9th, 2019, last updated on July 9th, 2019