Overview
We currently operate three manufacturing plants that are located at Sambalpur in Odisha, and Jamuria and Mangalpur in West Bengal. As of December 31, 2020, the aggregate installed metal capacity of our manufacturing plants was 5.71 million tonne per annum (“MTPA”) (comprising of intermediate and final products). Our manufacturing plants also include captive power plants with an aggregate installed capacity of 227 MW, as of December 31, 2020. We are also in the process of increasing the capacities of our existing manufacturing plants and captive power plants, which is expected to increase our aggregate installed metal capacity (comprising of intermediate and final products) from 5.71 MTPA, as of December 31, 2020, to 11.60 MTPA and captive power plants aggregate installed capacity from 227 MW, as of December 31, 2020, to 357 MW. These proposed expansions are expected to become operational between Fiscal 2022 and Fiscal 2025.
Integrated Operations
Our Sambalpur and Jamuria plants operate as ‘ore to metal’ integrated steel manufacturing plants and comprise captive railway sidings, captive power plants, iron pellet, sponge iron, billet, thermo mechanically treated (“TMT”), wire rod and structural mills, and ferro alloy plants. Our integrated manufacturing plants are fungible by design, which provides us with the ability to quickly adapt to continuously evolving market conditions, change our production and product offerings and optimise our operating margins thereby insulating us from price volatility. Further, our Mangalpur plant comprises sponge iron and ferro alloy plants, and a captive power plant. We have eight captive power plants that utilise non-fossil fuels, such as, waste, rejects, heat and gas, generated from our operations to produce electricity, and thereby enable us to operate at lower power costs. In Fiscals 2018, 2019 and 2020, and the nine months ended December 31, 2020, power units produced from our captive power plants accounted for 90.06%, 87.32%, 85.19% and 79.58%, respectively, of our total power units consumed. We believe that the proposed expansion plans of our captive power plants will help us to meet our increased requirement of power and enable us to become more self-sufficient.
