PROFILE

The production facility is at Salem, TamilNadu comprises of 200 TPD (Tons

per Day) sponge iron, 250 TPD steel billets and 400 TPD TMT bars. The
company is
also having a 12MW Captive Power Plant based on waste heat recovery and
by-product
(char) from the manufacture of Sponge Iron. As a result, the company enjoys
continuous power and the cost of power is comparatively lower when
compared to EB
tariff.
The company was promoted by (who died 2012)
who is a first generation entrepreneur. He had more than 35 years of
experience in
Ferro Alloys and Steel industry. The major raw materials of the company are
iron ore,
coal, M.S.Scrap. The company has tied up well with the suppliers for its entire
requirements. The company enjoys Credit Limits with its bankers viz., Indian
Overseas Bank and State Bank of India.
FINAL PRODUCT : TMT STEEL Bars:
The company is manufacturing TMT bars of size 8 mm to 32 mm. The
production
capacity is around 1, 32,000 TPA. The company is marketing its products
under the
brand name which is of high quality meeting the IS
1786:2008 standards provided by BIS (Bureau of Indian Standards). Hi-Tech is
an
ISO 9001:2008 Certified Company from TUV and it also has IS 2830:1992
Certification for its Steel Billets. The brand name is reasonably established
with the
support of more than 250 customers in TamilNadu and 150 customers in
Kerala
and Karnataka. The plant enjoys locational advantages for raw materials,
manpower
and finished goods and is close proximities to nearby Tamil Nadu, Kerala &
Karnataka.
With synergy derived from integrated operations and co-generation facilities,
the
company can afford to price the products competitively than stand alone
ingot and
rolling mills, which are the major suppliers of construction steel at present.
Line of activity :Integrated steel plant with Captive Power Plant
Products manufactured with Capacity:-

S.No Products manufactured

Capacity
1 Sponge Iron

60,000 MT per annum

2 Steel Billets
82,000 MT per annum
3 Steel Rods ( TMT Rods)
1,32,000 MTper annum
4 Captive Power plant
12 MW

In short final finished product TMT Rods production per day is 400 tons.
Present selling rate of TMT Rods is Rs. 40,000
Sales at Capacity production - 1.60 crores per day ( @ 40000/-)

Expected Sales per annum - Rs 500 Crores (Minimum)

on average 300 days taken

Major mile stones achieved by the Company

March 2003
Successful bidder at DRT for take over of a

Sick unit (Tamil Nadu Sponge Ltd.)

April 2003 Incorporation of the company
July 2003
Commercial production Sponge Iron 30,000 TPA
January
2005
Commercial production 2nd kiln Sponge Iron 30,000 TPA
Totally 60,000 TPA Sponge Iron.
June 2006
Commercial production Steel Ingot 30,000 TPA
(as part of forward integration)
June 2007
Steel melting production capacity expanded by 45,000 TPA, with
Continuous Casting Machine for the manufacturing of Steel
Billets for total production capacity 82,000 TPA.
March 2009
Commercial Production of Steel Rods from fully Automatic
Rolling Mill with a capacity of 1,32,000 TPA
(as the end product of forward integration)
November
2010
12 MW captive power plants commissioned. This meets the
entire power requirement of the company.
- In this plant the heat generated in the manufacture of Sponge
Iron is recovered to generate 5MW power.
- An additional AFBC boiler (using coal & char generated in
sponge iron process) is commissioned to generate 7MW power.
5
Major strength of the Company:
S.No Advantage for our company Competitors
1 On commissioning the Captive Power
Plant in November, 2010, the company
is self-reliant for its Power requirement.
Dependent on State Electricity Board.
2 Assured Continuous power Supply a
necessity for Power Intensive unit like
ours.
Affected by Power cuts. With
unscheduled power cuts, heating,

re-heating is required pushing up the

cost of production
3 Cost of Power is around Rs.3.50 per
unit.
Paying around Rs.7/- per unit
4 Ours is an integrated unit all production
process situated within a campus. Basic

raw materials being coal, iron ore and

scrap are only purchased. Reduces
transportation cost
They buy intermediary semi finished
goods from other manufacturers
their cost is higher due to the
intermediary profit margin and
additional transportation cost.
5. No duties and taxes are paid on
manufacture of Sponge Iron, billets &
Electric Power since they are self
consumed
Duties and taxes are Paid on
intermediary semi finished products
like Sponge Iron, Billets & Electric
power.
6. No Electricity deposit Huge electricity deposit is paid
(average two months consumption
amount)
SWOT Analysis:
Strengths:
_ The Company has been making good operational and financial performance since
2003. The entire profit has been reinvested in expansion and forward integration
projects.
_ Promoters are well experienced and have proven track record.
_ Well-qualified and experienced management and technical team.
_ Integrated steel making facility offers excellent synergy in terms of cost of
production, raw material sourcing and quality.
_ The capital cost is only 50%-60% of what is required for a green field project with
the similar capacity and product range.
_ The Company has firm allotment for supply of 84000 TPA Coal from M/s.The
Singareni Collieries Co Ltd.
_ The captive power plant based on waste heat recovery and bye product (char)
obtained from sponge iron production is expected to improve the bottom line to a
considerable extent. The company is self sufficient in power and not dependent on
TNEB.
_ The location is better placed in terms of logistics, raw material sourcing, and
closeness to demand pockets, manpower availability and social infrastructure.
_ The project location is just 20 km from JSW Steels Ltd (Formerly SISCOL), a only
large scale integrated steel unit. JSW offers job work opportunities for the
conversion of billets into TMT.
Weakness:
_ Steel plant is a Power Intensive Unit. Continuous power supply is essential.

However, the power cut imposed by the State Electricity Board affects the
production. Added to this are the unscheduled / un-announced power cuts
increases the cost of production since re-heating is necessitated. This major
deficiency which affected the performance of the company has now been
overcome with the operation of the Captive Power Plant of 12MW. The company is
now self-sufficient, since November 2010, in Power requirement and can also
sell the surplus power it generates.
_ General recession in global economy will affect the infrastructure units that
consume huge quantity of steel.
_ The demand for Steel rods is dependent on the availability of allied materials like
Cement and Sand.
Opportunities:
_ The scope for of steel products in India is huge as the per capita steel
consumption is only 43 kg in India- compared to 197 kg across the world.
_ The increased government allocation for infrastructure projects in Twelfth fiveyear
plan is expected to boost the demand for steel products.
_ The measures taken by the Government towards stringent tax compliance, is
expected to minimize unhealthy trade practices being resorted by small and
unorganized re-rolling units. This will facilitate conducive environment for the
integrated steel units.
Threats:
_ Import of steel from low cost producers such as China may affect the indigenous
units. However, the company will be able to withstand the competition with cost
cutting and synergy from cogeneration facility and other advantages that it has
over other competitors.
_ Slowdown in GDP growth may affect the demand for steel products
Infrastructure:
Land:
The Company owns about 65.21 acres of land in the above location, which is
considered adequate for existing operations and also for the future expansion.
Plant and Machinery:
The Company has installed plant and machinery for manufacturing of 60,000 TPA of
Sponge Iron, 82,000 TPA of Steel billets, 1,32,000 TPA of TMT bars and 12MW
captive
power plant. The manufacturing process is mechanized to a larger extent and
dependency on labour is reduced. The machineries have been acquired from
wellknown
and reputed suppliers in the industry. The capacities in the various sections are
well balanced for the targeted production level. The operational performance is
observed to be good.
Raw material: The main raw material required for sponge iron production is Iron Ore,
Coal, and Dolomite. For billet manufacturing, in addition to sponge iron, M.S.Scrap
and
Ferro alloys are used. The entire Steel Billets manufactured by the unit will be used
for
the manufacture of TMT bars. Besides, presently the additional requirement of
billets
will be purchased from market.
The Company has firm tie up for the supply of the above raw materials.

Water: The water requirement is estimated at 168.4 KLD, which can be met from
bore
well, purchase from outside source and TWAD Water allotment. The ground water
potential in the area is considered good. Hence, no problem is envisaged in getting
required water.
Power: The required power is fully met by the Captive power plant 12MW already
commissioned. The requirement for our full capacity operation is calculated at
11MW
and there is a surplus 1MW generation which can also be sold to outsiders/TNEB.
Manpower The manpower requirement is fully in place. The company directly
employs 500 persons. For the labour category, the company is engaging labors from
Bihar and Orissa. Boarding and lodging arrangements are provided to them within
the
company premises.
Statutory clearances: The Company has obtained all statutory approvals viz. Town
Planning, Fire service, Pollution, Inspector of Factories, Inspector of Boilers, etc.,
required for the operations of sponge iron plant, iron billets, steel rolling mill and the
Captive Power Plant.
The plant is centrally located within the State of Tamilnadu and well connected by
Road
and Rail. It is very convenient in terms of sourcing raw material, manpower,
connectivity to demand pockets, etc.
Sales turnover:
The performance of the company is tabulated below:
Year Year ended Qty(tons) Produced, sold & Own
consumption
Value
Rs.in Crores
(exclusive of
duties &
taxes)
Sponge Iron Billets Bars &
TMT Rods
1 31-03-2004 14,475 12.32
2 31-03-2005 29,475 26.49
3 31-03-2006 41,911 35.34
4 31-03-2007 35,829 9,239 46.00
5 31-03-2008 38,373 22,841 82.56
6 31-03-2009 19,591 23,813 1,523 85.37
7 31-03-2010 19,647 27,399 23,147 74.03
8 31-03-2011 27,576 45,778 24,795 137.65
9 31-03-2012 22,700 47,310 51,233 201.52
10 31-12-2013 17,810 44,115 45,052 212.50
Directors view the above turnover as sales during construction period only . All
these
years, time and energy was spent on expansion on forward integration and the
installation of Captive Power Plant (CPP). This CPP has enabled the Company to be
selfdependent
for its power requirement. This has added huge strength to the Company to
operate its plant to its fullest capacity without any interruption.

The entire plant was completed and is ready to produce to its installed Capacity
production.
Now, the Company is Proud to own the biggest integrated steel making unit in this
Industry.
It is Owners Pride and Competitors envy in this Power intensive industry.
TECHNICAL :
DRI ( DIRECT REDUCTION OF IRON ) COMMONLY KNOWN AS SPONGE IRON
Equipped with the LURGI Germany and Sponge Iron India Ltd technology our
Sponge Iron plant has added a unique dimension to the manufacture of Sponge Iron.
Ours is the first of its kind successful in operation from 2003. Right from the
selection
of high grade iron ore and coal, we source only the finest raw material for
production.
The pursuit for precision involves a judicious mix of iron ore and coal in proper
proportions and maintaining the right temperature in the kiln where the two raw
materials are processed. With the process of de-oxidation and the successive
formation
of the spongy texture, high-quality sponge iron is produced.
Meticulous screening, testing and storage of the sponge iron further ensure that
it has the right properties to be the raw material for the manufacture of steel. With
our
exclusive Sponge Iron factory producing the requisite raw material, we are able to
guarantee assured quality in the subsequent processes as well, leading to highgrade
finished products like steel billets & TMT bars.
BILLETS :
HI-TECH was the first to manufacture Billets by Installing Continuous Casting
Machine. Uniform heating in the electrical furnace makes sure the composition of
the
sponge iron is consistently maintained. The manufactured billets are subjected to
thorough inspection by our experts using Electro Spectrometer for optimal chemical
composition. Once the billets qualify the analysis, they are taken to the rolling mill
for
further processing.
VIRGIN IRON ORE,STEEL,BILLETS,SPONGE IRON (DRI) TMT STEEL
high quality Thermo Mechanically Treated (TMT) bars are
manufactured using the most modern technology available worldwide. The work
process is fully streamlined meeting international manufacturing standards. The
salient
features of our state of the art rolling mill include an extensive billet yard of castwise
stacking of billets, reheating furnace, roughing mill, intermediate mill, pre-finishing
&
finishing mill, Automatic Cooling Bed for Self Tempering and Atmospheric Cooling
which
only very few has and the most modern equipments for the manufacturing of TMT
bars.
Our TMT steel bars are made using the contemporary Quenching &
Tempering technology. So bars have greater dimensional
tolerance, strength, higher yield & elongation, uniform micro structure, toughness,

ductility, weld ability and are highly resistant against corrosion. They also bond
better
with cement concrete mix. Certified quality checks using Universal Testing Machine
(UTM), Spectrometer, Wet Analysis etc., at every crucial stage have been a
prominent parameter for the overall quality of our products. This is why we say