Posted In: Ferro Alloy, Metal

ISPATALLOY – Balasore Alloys Ltd

Balasore Alloy’s, formerly Ispat Alloys Limited is part of the renowned Ispat group of Companies, a major business house in the country, promoted by the Mittals. The groups companies are spread across several countries besides India.
Balasore Alloys was incorporated in the year 1984 at Balasore, Odisha and at present it has two plants with total capacity of 160,000 MTPA. With multiple furnaces of different capacities, the company has the flexibility to produce different grades of Ferro Chrome as per market dynamics. This adds to the competitive advantage of the organization as a range product mix can be maintained at the same time even with lower quantity requirements.
The company has captive mines in different locations in Sukinda Valley at Jajpur Road (Odisha).The mines take care of the Chrome ore requirement of the company. BAL is one of the few Ferro Alloys manufacturing companies in the country having captive mines and this is a major competitive advantage since availability of Chrome ore is very uncertain and the price is volatile. Other raw materials are sourced from both Domestic and International Markets. The products of the company enjoy international reputation.

~97% of the chrome ore resources of India are in Sukinda valley
~10 Companies have Chrome ore Mining lease in Odisha, India
Avg. Landed Cost of Chrome ore in China is ~2X of BALs landed Cost of Chrome Ore
BAL is one of the Lowest Cost Producers globally, making its business more Resilient to Depressed Prices

What is Ferrochrome?

Ferrochrome (FeCr) is a corrosion-resistant alloy of chrome and iron containing between 50% and 70% chrome. Ferrochrome production is essentially a carbothermic reduction operation taking place at high temperatures. Cr Ore, an oxide of chromium and iron, is reduced by coal and coke to form the iron-chromium alloy. The heat for this reaction comes typically from the electric arc formed between the tips of the electrodes in the bottom of the furnace and the furnace hearth. This arc creates temperatures of about 2800°C. In the process of smelting, huge amounts of electricity is consumed.

Products/Services

Ferrochrome (FeCr) is an alloy of chromium and iron containing between 50% and 70% chromium. The Producer od stainless steel & tool steel are the largest consumer of ferrochrome and charge chrome.It is chromium that confers upon stainless steel its remarkable corrosion resistance.

Out of the total world chrome ore output about 95% is used to produce ferrochrome for the metallurgical industry, with 2% used in chemical industry and the balance 3% in the refractory and foundry industry. Later majority of which is used in Cast Iron, Alloy Steels & Stainless Steel.

Clients


Plants and Capacity

Chromite Ore Mines
The Company has a Captive Chrome Ore Mine in Sukinda Valley in Jajpur District of Odisha which is about 170 kms. from our plant. The mine takes care of the Chrome Ore requirement of the Company. Captive Chrome ore mines with proven resources of ~34 Million MT.

Chrome Ore Beneficiation Plant
Chromite Ore fines extracted from the mine is fed into the Beneficiation Plant where the entrenched waste is separated from the ore. Waste is separated by dense medium separation and concentrate material is separated through a spiral centrifugal water process.

Balgopalpur, Odisha – Manufacturing Capacity : 145,000 MTPA, planned to increase to 160,000 MTPA
Sukinda, Odisha – Manufacturing Capacity : 15,660 MTPA, planned to increase to 24,696 MTPA

Financials

(In Rupees Crores) 2018-19 2017-18 2016-17 2015-16
Total Income 1,270.16 1,271.02 1,033.91 844.71
PBT -32.82 108.05 134.85 34.99
PAT -29.16 65.56 83.64 18.69
EPS -3.05 7.35 10.52 2.50
ROCE 4.92 17.75 18.43 2.00
ROE -3.13 6.78 9.27 4.38
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by , created on July 18th, 2019, last updated on July 18th, 2019