G.K. STEEL AND ALLIED INDUSTRIES, LTD
OBJECTS & ACTIVITIES; Manufacture of steel billets.
INCORPORATION & PROMOTION: The Company was incorporated on 12 the August,
1986 as a private limited company and coverted into a public limited company
on 6th June 1988. It was promoted by G kandawamy and his sons and
THE PROJECT: The Company undertook to set up a mini steel plant for the
manufacture of steel billets with an installed capacity of 57,600 tonnes per
annum. land admeasuring 7.02 hctares was acquird at Thamaraipadi village a
notified backward area in the Dindigul Taluk of Tamil Nadu The Company
incorporated th sate of the art tchnolony in electric arc furnace acquired
from Asea Brown Roveri ltd ) steel making. Teh main plant and machinery
comprises of 25 tonne ultra high power furnace with faciliteis such as
eccentric bottom tapping water cooled panel for furnace walls and root
exyfuel burner etc. Ladle refining furnace and continous feeding arrangement
for sponge iron were also installed. Teh continous casting machine was
supplied by M/s concast india ltd. while the transpformer for the substation
was acquired from M/s NGEF Ltd. Teh plant was commissioned during the last
week of March 1990 Commercial production commenced in the beginning of 1990-
OPERATIONS: During 1990-91 the Company completed its first full year of
production. The operation had stabilised after overcoming the initial
teething trouble. Turnover amounted to Rs24.76 crores Custom duty on raw
materials was increased during december 1990 Hence there was an increase in
the cost of raw materials by 20% During 1991-92 production improved to 56,727
tonnes inspite of inadequate quantity of raw-materials during the first half
of financial year due to import restrictions imposed by the Government.
During 1992-93 production and sales turnover increased by 34% and respective
when compared to the previous year.
EXPANSION: During 1990-91 a licence was received to expand the capacity of
mild steel and alloy steel ingots and billets from 50,000 tonnes 1,50,000
tonnes per annum. Additional power supply of 11 MVA was also obtained from
Tamil Nadu Electricity Board for this expansin, Addtional equipments were
being installed to enhance the capacity . During 1992-93 the Company
proposed to commission ladle refining finance to manufacture higher volume
FINANCE: IDBI in participation with ICICI and IFCI manctioned a term loan fo
Rs 695 lakhs.
Duirng 1995-96, the company is trying to restart the main manufacturing unit for the value added products. The company is also trying to achieve better utilisation of capacity.