Gallantt Group of Industries
Gallantt Group of Industries
Gallantt Group of Industries
Gallantt Group of Industries
Gallantt Group of Industries
Gallantt Group of Industries
Gallantt Group of Industries
Gallantt Group of Industries Gallantt Group of Industries Gallantt Group of Industries Gallantt Group of Industries Gallantt Group of Industries

GALLANTT ISPAT LIMITED

COMPANY OVERVIEW

Gallantt Ispat Limited (GIL) has become a well established public limited company, listed on both the premier stock exchanges of India viz. Bombay Stock Exchange Limited and National Stock Exchange. GIL is one of the companies of Gallantt GroupĚ which was incorporated in 2005 at Kolkata, with an object to carry on the business of manufacturers, producers etc. in all kinds of iron and steel products such as sponge iron, Pellets, pig iron, cast iron, bars, rods, billets, Captive power plant and wheat products. The group has come a long way since 1984, when it made a simple and humble beginning by setting up a small industrial venture, to presently running an primary steel plant with captive power plant and flour mill with own private railway siding in the state of Uttar Pradesh with an investment of Rs.350 Crore, is the only one of its kind in the State of U.P., Bihar, Uttaranchal, Haryana and Delhi.

Gallantt Ispat Limited is one of the fast and aggressively growing organization, which has captured a substantial market of Sponge Iron, M.S., Billets, Re-Rolled products (TMT bars) and wheat flour products in the state of Uttar Pradesh within a short span of time. The group has about three decades of experience in steel and food processing industries and is well known by its brand name "Gallantt" which is ISO 9001:2008 & ISI certified. We are currently catering to various reputed clients such as Shalimar Corp Ltd., Viraj Construction Pvt. Ltd., Parasnath Developers, Omega Developers & Builders, BBD University, Uttar Pradesh Rajkiya Nirman Nigam and other State Government Departments.

The in house consumption of entire Sponge Iron to manufacture billets which is further rolled into TMT bars along with installation of captive power plant to utilize the waste heat improves profitability of the company thereby making it economically more viable. At GIL, success is measured in terms of customer satisfaction and quality that is built into every product. The value of commitment to quality is also cherished by each of our staff members. This growth has been achieved by a maintained strategy of continual investment in our manufacturing facilities and technology. As a testimony to this "Gallantt" has become one the major secondary steel producers in India.

Installation of private railway siding for easy movement of raw material and finished goods has incurred lower logistic costs and proved enormous advantages to the Company and kept other similar business houses in the region very far and out of competition. Company has achieved all its past projections, sales target and posted a progressive margin year after year, in spite of sluggish market and low demand in the recent years.

We, at Gallantt, have always believed in the process of evolving & diversifying as the only way to succeed & move ahead. Keeping a view of this endeavor, we forayed into the field of Real state with our flagship project in GUL, Shalimar Gallantt, Mahanagar, Lucknow. The same is being developed in a joint venture with one of the reputed developers in Lucknow, The Shalimar Group.

Shalimar Gallantt is a high-end group housing being developed at a strategic location in the heart of Lucknow, Mahanagar. The Project is spread over an area of 15 acres and has been designed by Architects of international fame, M/s Arcop from Montreal Canada. The Landscapist for the project is MPFP Llc. from the U.S.A. and is headed by Mr. Paul Freidberg.

Shalimar Gallantt as a project has been cautiously designed while keeping in mind the demographical requirement of the population in and around Lucknow; basis which, a combination of 2 BHK/ 3 BHK/ 4 BHK apartments have been designed to suit the needs of the buyers. The total build-up area of this project is a whopping 15 Lac Sq. Ft. which also makes us the largest project in terms of size inside the city centre of Lucknow.

The blending of both the Companies through amalgamation is like consolidation of our strength which will lead to the creation of better opportunities and sustainable value for all stake holders and create a great value addition to the assets and income of the company which in turn, will substantially increase worth of shareowners of Gallantt Ispat Limited besides many other benefits to be accrued to them.

EXPANSION PLAN IN GALLANTT ISPAT LIMITED

Company sells substantial part of its production in U.P. Acknowledging the region's enormous potential for steel consumption and have decided to almost double the present installed capacity to the tune of 330000 MTPA with 53 MW of Power Generation capacity. Such a step would require a huge investment of approx. Rs.300 crores within a short span for which Company is well equipped with.

In consultation with the technical team of the Company and Consultants, management is of the view that an Investment of approx.Rs.300 Crores is likely to be made in the expansion plan. Cost of expansion shall be funded through Internal Accruals and receipt of due subsidies from State Government. Consequent upon the expanded capacity being starting operational by Jan, 2018, turnover and profitability of the Company will be increased substantially. Company is planning to fund the expansion in such a way that its day to day operation and fund requirement does not get adversely affected. Existing infrastructure in manufacturing unit is sufficient to accommodate expansion plan.

                                                                                            Capacity in MTPA

Units

Existing Capacity

Addition

Total Capacity
after Expansion

Sponge Iron

99000

198000

297000

Steel Melt Shop

167400

162600

330000

Rolling Mill

162380

167620

330000

Captive Power Plant

18MW

35MW

53MW

Flour Mill

108000

NIL

108000

Besides the existing real estate project of Lucknow and expansion in manufacturing unit, company has also planned to execute development of the existing land bank of 12,85,892 Sq.Ft. into group housing and commercial projects.

GOVERNMENT INCENTIVE TO THE UNIT:

Setting up of the primary steel plant and flour mill in Gorakhpur, Uttar Pradesh also provides our Company with benefits like Interest free loan equivalent to Sales Tax Amount for a period of 15 years. Besides this, the unit is also eligible for 20% capital subsidy, 10% Infrastructural subsidy, 5% additional subsidy. Further, 65% of capital investment is available in the form of transport subsidy for a total period of 15 years to be reimbursed against the payment of freight of raw materials i.e. Iron Ore. Thus, the total subsidy available to our unit is 100%, equivalent to the total amount invested in the fixed capital of the unit.

STATUS OF GRANT

The State Government has disbursed part payment of Rs.24.28 crores of the subsidy on the investment made till May 31, 2009 to the company as we were declared eligible for the subsidy and other benefits. We have further submitted our Capital subsidy claim of Rs.98.34 crores adjusting Rs.24.28 crores already received, on the investment made up to May 31, 2012 and a claim of Rs. 155.53 crores as freight subsidy and refund of already deposited VAT/CST Rs.15.72 crores due up to March 2016 making a total of Rs.269.59 crores as on March 2016 which is pending for disbursement before the nodal agency (PICUP) of the scheme. As the state Government vide its order dated 18.11.2011 and 11.02.2015 refused the balance payment of subsidies, we have filed writ petition before the Hon'ble High Court of Allahabad, Lucknow Bench and Hon'ble High Court, Allahabad vide its order and judgement dated 05.11.2015 directed State Government to pay subsidies forthwith as per scheme and take a fresh decision within three months in relation to the benefits of interest free loan against VAT; and have also stayed recovery of taxes till a fresh decision is taken. State Government has filed an SLP before the Hon'ble Supreme Court challenging this order which was dismissed on 29.02.2016 resulting order of the Hon'ble High Court dated 05.11.2015 becomes final.

State Government, in its meeting held on 04.04.2016 decided to make payment of subsidies as directed by Hon'ble High Court and have further decided to ask for six months time from Hon'ble High Court to complete the process of payment. On said application of the State Government, Hon'ble High Court has rejected the same and directed the State Government to appraise the Petitioner about the decision taken not later than three weeks. In these circumstances, disbursement of subsidies is expected shortly.

EXCELLENT TRACK RECORD OF LOAN REPAYMENT

An amount of Rs.156 crores was sanctioned and disbursed to Gallantt Ispat Limited, Gorakhpur, by State Bank of India and other consortium member banks which was due to be repaid by 2016; but company has repaid entire loan well in advance in 2014; thus making the company debt free except for the working capital loan.

 

 

 

Gallantt Group of Industries
Gallantt Group of Industries
OUR PRODUCTS
Sponge Iron | M. S. Billets | Rolling Mill| Wheat Products
Gallantt Group of Industries
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Gallantt Group of Industries