The finished steel consumption in India has increased at a CAGR of 5.69 percent over the last 10 years and has reached a total production value of 90.68 Metric Tonne. The industry is gradually experiencing growth owing to the massive infrastructure boom across the country. Businesses in the steel manufacturing sector are raising the bar everyday. In the current scenario, growing businesses need someone they can trust with regard to the quality and someone who has been there for a long time now. It was as early as 1984 when Chandra Prakash Agrawal, the Chairman & MD started his journey of Gallantt group with minimum investments and assets but now has become one of the trusted and prominent names in the Iron & Steel manufacturing industry. A nominal investment on an oil extraction plant got it started and today, Gallantt Group runs two primary steel plants along with captive power plants located in the states of Uttar Pradesh and Gujarat.
According to the Chairman, it is the maintained strategizing of continual investment in the company’s manufacturing facilities that have helped it in achieving the desired growth over the years. “Gallantt Ispat operates a steel plant which comprises Sponge Iron unit, Steel melt Shop with continuous casting machine which produces MS Billets and Rolling and Block Mill which produces TMT Bars and Wire Rod, 53 MW Captive Power Plant which ensures uninterrupted power supply to the entire facilities,” states Agrawal.
Expanding the capacity
Gallantt gets all its raw materials transported through railway tracks in bulk quantities in their private railway siding inside the plant premises. The company faced a major crisis during the years of 2018-19 owing to railway rakes. It took an extensive level of persuasive discussion with the railway authorities to handle the situation. Gallantt was then upgraded to the Priority C category under which they were allotted railway rakes from different railway zones as per requirement. This upgradation immensely facilitated the business of the company by creating the availability of raw material which thereby reduced their raw material transportation to a great extent.
Gallantt Ispat operates a steel plant which comprises Sponge Iron unit, Steel melt Shop with continuous casting machine which produces MS Billets and Rolling and Block Mill which produces TMT Bars and Wire Rod
It is true that it is of high risk to any company to expand during recession. But as it has been truly said that life is either a daring adventure or nothing at all, Gallantt dared to take up the grave risk of doubling their steel making capacity thus making it 3,30,000 MTPA with a power generation of 53 MW which took an investment of 250 Crore. “At the same time when we commenced commercial production, steel markets improved drastically thereby helping the company reap the benefits of the expanded capacity,” states Mayank Agrawal, CEO, Gallantt Group.
The Road Ahead
The company is further undergoing capacity enhancement in the manufacturing facilities and background integration by the installation of a Pelletisation plane in order to produce 8,00,000 metric tonne iron pellets with the capital expenditure of 800 Crore. It is expected to commence commercial production by March, 2021.
Further, the company has a land bank of approximately 12 lac sq.ft in Gorakhpur which will be developed into world class commercial and residential complexes shortly. It has recently purchased land at “Ramgarh Tal”, adjacent to the lake and has already signed MOU with Taj Group of Hotels to construct a Five Start hotel besides a multiplex and residential complex. “We are also planning to construct a Multiplex cum 3 Star Hotel cum banquet near Gorakhnath Temple on Gorakhpur - Nepal Highway; preliminary study/ work for the same is under process,” says the Chairman.