Godawari Power & Ispat (GPIL) is a public limited company, formally known as Ispat Godawari Ltd (IGL), belonging to Hira Group of Industries, Raipur. The company was incorporated on September 21, 1999 to set up an integrated steel plant with captive power generation. GPIL is listed company with the National Stock Exchange and Bombay Stock Exchange.
The company is engaged in the production of sponge iron, steel billets, ferro alloys, HB wires, oxygen, fly ash bricks and is also in the power business. GPIL is a flagship company of Raipur-based Hira Group of Industries, which is an integrated steel manufacturer and is having dominant presence in the long product segment of the steel industry; mainly into mild steel wire.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 pallets.
GPIL has also been awarded rights for iron ore and coal 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 is now a fully integrated manufacturer.
GPIL has come a long way since it started its operation in Raipur, Chhattisgarh as a sponge iron manufacturer in the year 2001. Over the last few years, the company has scaled up its capacity five fold and is today the third largest producer of coal based sponge iron in India and is one of the largest players in the mild steel wires segment.
The company crossed Rs 1000 crore marks in turnover. 2007-08 has seen an all around growth in the performance of the company, backed by higher volumes of production and better price realizations.
The different divisions of the company are:
- SID - The steel sector is growing at a robust rate with significant increases in both production and consumption. Crude steel production grew at more than 10% annually from 34.71 million tones in 2002-03 to 50.82 million tones in 2006-07.
- Power plant - An effort to achieve higher productivity and increased energy efficiency, the company established its own power plant division. The division started operations in September 2002 with a 35 tonnes waste heat recovery-based captive power plant (CPP). A year later it undertook expansion with a 70 tonnes coal-based power plant utilizing coal fines and coal rejects from the sponge iron process as fuel. Again, in the year Jan 2006 capacity was further enhanced with the help of 56 tonnes waste heat recovery boiler increasing the generation capacity to 30 MW. And finally generation capacity was further enhanced by 25 MW in Apr 2007 with the addition of two 51 tonnes boiler taking the total generation capacity to 53 MW.
- Ferro alloys - Ferro alloy division of Godawari Power & Ispat is one of the leading manufacturers of Ferro alloys. It produces around 13000 mt of ferro alloys per annum and having a vision to achieve around 23000 mt. of production. Ferro alloys is an essential component in the manufacturing of various grades of steels.
- Wire division - GPIL makes mild steel wires or HB wires through cold drawing process using steel wire rod, purchased from subsidiary company as a raw material. Wire Rod is firstly D-scaled with the help of Double plain descalert rid of mild scale. Then the cleaned wire rod is passed through the different number of dies & druman, average reduction and required size achieved and this wire is taken in bundle shape of appropriate casting.
- Oxygen plant - Oxygen generating systems units’ plants are suitable for a large number of industrial applications. Oxygen is an important ingredient that is required in large volume in many applications. At GPIL Oxygen gas is captively used for the steel manufacturing process. This meets the entire oxygen requirement for GPIL for both iron and steel making. The surplus is than sold. The total capacity of this division at GPIL is 10, 80,000 cu.m. per annum.
- Fly ash brick plant - Fly ash generated during the combustion of coal for energy production is one of the industrial by-products and it is recognized as an environment pollutant. Because of environmental problem of fly ash, a good deal of work and applications on the utilization of fly ash has been undertaken world over.
- Equipment - The Equipment Division at GPIL has been initiated to design and manufacture the various Capital Equipments and their parts for the in house consumption of various units of the Group and their Associates.
- Pelletisation - The process of pelletizing enables converting iron ore fines into “Uniformed Sized Iron Ore Pallets” that can be charged into the blast furnaces or for Production of Direct Reduced Iron (DRI).pallets are uniform size, with purity of 63%- 68% contributing to faster reduction and high metallization rates.
Subsidiaries of the company are
- Godawari Cement & Clinkers Ltd - GPIL is setting up a manufacturing facility in the state of Chattisgarh with proposed investment of Rs. 628 crore. Clinker with an annual capacity of 1.00 MTPA, cement with an annual capacity of 2.00 MTPA, captive Power plant with 50 MW of capacity.
- Godawari Energy Ltd - Godawari Energy Limited formerly known as Godawari power Ltd.is a upcoming project of a power plant with 1200 MW capacity coming up at Raigarh district.
- R.R. Ispat - As part of forward integration process, when GPIL has acquired 100% equity share capital of M/s R.R.Ispat Ltd., a company engaged in the rolling of Billets manufactured by GPIL into wire rods and further conversation of wire rods into wires.
- Ardent Steel Ltd, New Delhi- Ardent Steel Ltd (ASL) proposes to set up a project for producing 0.6 million tones of pellets per annum. The land is located very close to iron ore mine belt near Barbil. So that as ASL is able to procure Iron ore fines at a cheaper rate with lower cost of carriage inward.
- Hira Steels Limited - Hira Steels Limited was established in 1994. It is a state of the art fully automatic, high speed wire rod mill & wire drawing unit with an installed capacity to produce 42500 MT of Wire rods & 20000 MT of wires. The current capacity of the plant is 1,00,000 MT per annum of Wire Rods & 50,000 MT per annum of HB Wires.
GPIL has been granted mining lease for 2 iron ore mines at Ari Dongri and Boria Tibu in Chattisgarh. This would be on an area of 216 hectare & prospecting license for another iron ore mines with an area of 754 hectare in Chattisgarh.
GPIL has also been granted mining rights in consortium for mining of coal in Chattisgarh and the coal mines are being developed through special purpose Joint venture Company which has also achieved significant progress towards getting various regulatory approvals and coal mining operations are expected to commence some time in FY 2011.