One of the India's largest producers and exporters of Ferro Alloys, an essential ingredient for manufacture of Steel and Stainless Steel. It exports to several countries like Korea, Japan, Italy, Netherlands, USA, Turkey, China and Taiwan.
Setting up of additional 27 MVA Furnace:-
As on 13th May 2017, company have approved the setting up of additional 27 MVA Furnace in its Charge Chrome Plant at D.P. Nagar, Randia, District Bhadrak, Odisha. It is expected that plant shall come its operations by October 2018 . Once the additional furnace is operations, it would enhance the existing production capacity by 50,000 MT per year thus taking the overall production capacity to about 120,000 MT per annum.
The power requirement for operation of the additional Furnace would be met by supply of uninterrupted power from the Captive Power Plant set up by Facor Power (FPL), the Subsidiary of the Company, adjacent to the Charge Chrome Plant, resulting into no transmission loss etc. This will also improve the capacity utilization of the power available from FPL.
GOVERNMENT INITIATIVES ADDING SPUNK TO THE COMPANY:
GST --> A bigger achievement for sector
Steel industry is likely to benefit from the new GST rate for steel which has been finalized at 18%. With key inputs like coal, iron ore pegged at 5%, which is the lowest slab under GST , could be looking at lower input costs. Together, with a substantial slash in transport costs due to unified and standard tax rate under GST, this is likely to help steel companies reeling under large debt and also keep steel prices stable.
New tax structure will be neutral for the steel sector but there may be collateral gains for the industry, which was under rough weather until recently. With CENVAT rules being replaced by GST, the credit cycle will become smooth, thereby improving the visibility of revenues and increasing liquidity and availability of working capital.
The move will bring down the input cost and would lead to stabilization of prices, and more and more expansion of steel plants would take place, steel sector will be benefited from this move & would indirectly benefit the company in coming years.
National Steel Policy 2017 --> AIDING GROWTH IN THE STEEL SECTOR
With the roll out of the National Steel Policy-2017, it is envisaged that the industry will be steered in creating an environment for promoting domestic steel and thereby ensuring a scenario where production meets the anticipated pace of growth in consumption, through a technologically advanced and globally competitive steel industry.
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