Delivering Quality Performance
Prakash Industries has emerged a winner thanks to its focus on quality and costs through innovation and adoption of latest technologies
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Established in 1980, integrated steel & power company Prakash Industries (PIL) is today known for its quality technology intensive products at competitive prices thanks to innovative cost cutting measures and maximum resource utilization.
In 2019, PIL’s net sales grew 22 per cent to Rs 3,588 crore as against Rs 2,935 crore a year earlier. The EBITDA for the year was Rs 794 crore compared to Rs 596 crore in 2018 reflecting a growth of 33 per cent. The profit after tax grew more than 39 per cent to Rs 535 crore as against Rs 384 crore in the previous year, which resulted in EPS of Rs 33.41 in FY19 as against Rs 25.58 in the previous year.
PIL’s integrated steel plant at Champa in Chhattisgarh has established many benchmarks in terms of quality products, adoption of environment friendly technologies, customer satisfaction, and social responsibilities.
“The products offered by us possess excellent quality, durability and performance. Our rapid growth shows the bright future outlook,” says Ved Prakash Agarwal, Chairman & Executive Director, Prakash Industries.
The company has always adopted latest technologies. Besides, it has been adhering to its quality parameters and objectives to survive in the competitive market place. “We are all set to boost the momentum of growth with further expansion in steel and power sectors,” says Agarwal.
The company has set up facilities to manufacture wire rods, HB wires, TMT bars and structurals as forward integration to achieve highest value addition. PIL also owns iron ore mines to meet its iron ore requirement for sponge iron manufacturing. Various statutory clearances are under processing, upon which these will be operated and put to use.
At present, the company operates a captive power generation plant, making itself completely self-reliant in power for its integrated steel plant and future expansion projects. Utilisation of low-grade fuel and latest technology turbines has also helped PIL to focus on its aim of expanding in power generation along with expansion plans in the steel sector.
The company is bullish about the future prospects as the Indian steel industry is expected to grow 7-8 per cent annually in the coming years at the back of strong demand from vital sectors like construction, infrastructure, and automobile among others.
In order to benefit from the continuing favorable scenario in the industry, the company has taken up capacity addition with higher focus on backward integration. It has completed the installation of an 0.2 mn tpa sponge iron kiln along with 15 MW power co-generation with commercial production expected from the end of July 2019, the company said in its annual report for FY19.