SECTOR: STEEL
Gallantt Ispat

Gallantt Group made a humble beginning in 1984, with an investment in an oil extraction plant. At present, the group runs two primary steel plants with a captive power plant in Uttar Pradesh and Gujarat in the name of Gallantt Ispat and Gallantt Metal, respectively. Gallantt Ispat operates a steel plant, which comprises a sponge iron unit, steel melt shop, a rolling and block mill and wire rods, and a 53-MW captive power plant for uninterrupted power supply to the entire facility. Mayank Agrawal, CEO, Gallantt Ispat, shares more…

One decision you consider the biggest contributor to company’s growth in FY2018-19: Naturally, nobody risks expanding capacity during recession.

But we expanded our steel making capacity twofold, making it 330,000 mtpa, and the power plant to 53 MW with an investment of Rs.2.5 billion. Our decision was right as we could successfully complete the expansion programme at a lower capital cost, which resulted in negligible borrowing and reduced the interest burden. And, when we commenced commercial production, the steel markets improved, helping the company reap the benefits of the expanded capacity.

One single factor you avoided that could have otherwise impacted the company’s top-line and bottom-line: The company has avoided borrowing funds, which has kept us away from the debt trap and burden of loan repayment and interest thereon. All our expansion programmes are going on with internal accruals. We are not solely dependent on indigenous procurements of raw materials and are importing raw materials at competitive prices.