MSP STEEL & POWER Share price

VI. COMPANY MANAGEMENT AND PROJECT Brief History of the GroupMSP Group is one of the leading steel manufacturers in the secondarysector in Eastern India. The Group has multiplied its businessoperations in terms of sales and production by setting up differentprojects in the steel sector and industrial gases in West BengalOrissa Chattishgarh and Jharkhand. The group turnover was in excess ofRs. 25000 lacs during the year ended March 2005. A snapshot of the Group's current manufacturing capacities is asfollows:Howrah Gases Limited: 60000 TPA Sponge Iron unit at Ranigunj W.B.36000 TPA Induction furnace and 120 M3 per hr of industrial oxygen atBurdwan W.B.Ashirwad Steels Ltd: 45000 TPA and 60000 TPA Sponge Iron Units atJamshedpur and Hyderabad respectively and 32800 TPA of LPG BottlingPlants at Uluberia and Raigarh.MSP Sponge Iron Limited: A Sponge Iron-manufacturing unit with acapacity of 60000 TPA at Keonjhar Orissa.MSP Steels Private Limited: 50000 TPA Induction furnace and 36000 TPARe-rolling mills at Keonjhar Orissa.MSP Rolling Mills (P) Ltd: 24000 TPA Re-Rolling Mill at Howrah WB.Rama Alloys Private Limited: 90m3 Per hr of Industrial Oxygen.In view of the experience of running a secondary steel plant andindustrial gases unit successfully the MSP Group now proposes to putup an integrated steel complex at Jamgaon Raigarh Chhattishgarh. Theprocess route selected for the manufacture of steel via the Sponge IronPlant-Induction Furnace-Continuous casting - TMT Bars and Wire rodswith major power supplied through a captive source would ensureefficient production.The iron ore would be sourced from Barbil mines which is approximately260 kms from Jamgaon. It is planning to source complete non-coking coalfrom the mines located at approximately 50-60 kms from the proposedproject site.Brief History of the CompanyThe company was incorporated as Adhunik Rollers Pvt. Ltd. having itsregistered office at 1 Crooked Lane Kolkata-700 001 West Bengal on18.11.1968. The name of the Company was changed to MSP Steel & PowerPrivate Limited on March 2003. The company subsequently became apublic company under the name of MSP Steel & Power Limited with effectfrom 9th September 2003.Present ActivitiesThe company is currently involved in manufacturing of sponge iron andtrading of steel products.MAJOR EVENTS IN THE HISTORY OF THE COMPANYCapacity/facility creation location of plant etcThe company has proposed to set up an Integrated Steel plant with acapacity to manufacture 192000 M.T. p.a. of Sponge Iron through twokilns of 300 tonnes capacity each 2 Nos. 96000 Tonnes per annum alongwith 36 Tonnes per hour waste heat recovery boiler 16 Mega WattCaptive Power Plant 95109 tonnes per annum Steel Melt Shop comprisingof 3 nos. 12 tonnes Induction Furnaces and 1 No. 2 Strand BilletCaster and 80000 Tonnes per annum Re-Rolling Mill.The project shall be located at the address below:Location of the ProjectPlant Site City OfficeMSP Steel & Power Limited MSP Steel & Power LimitedVillage & P.O. Jamgaon Hari BhavanDistrict Raigarh Near Pahar MandirChattissgarh - 496001 Raigarh Chattisgarh Phone: +91 7762 26449/50/51/52/53 Phone + 91 7762 226532 Fax : + 91 7762226533The Company has started producing sponge iron from Kiln I whichcommenced production from 4th November 2004.Apart from the above Integrated Steel project the Company is alsosetting up the following Ancillary Projects to aid the Integrated SteetProject.1. Coal Washery Plant with capacity of 576000 TPA.2. Expansion of Power Plant from existing 16MW to 24MW by addition offurther 8MW3. Private Railway Siding of 2.4 Kms at the project premise.ProductsThe company was earlier engaged in production of Katha an ingredientused in the preparation of readymade betals. The raw materials for themanufacture of katha is wood and owing to scarcity of the same theproduction of katha has been discontinued.The Company at present produces sponge iron and minorly trades in MSrods and oxygen cylinders and other steel products.Competitive conditions Marketing etcThe company has a competitive edge over competitors due to thefollowing reasons:* Capacities to meet demand* Quality of the final product* Market reputation of the promotersDefaults/Re-Schedulement with Banks and InstitutionsThe company has neither defaulted nor has there been any reschedulementwith Financial Institutions/Banks conversion of loans into equity.There has been no event in the company such as strikes lock outs etc.Location of the companyThe Registered Office of the company is located at 1 Crooked LaneKolkata 700 069 and corporate office is located at 16/S Block A 2ndFloor New Alipore Kolkata - 700 053.