Gallantt Group of Industries Gallantt Group of Industries
Gallantt Group of Industries
Gallantt Group of Industries
Gallantt Group of Industries
Gallantt Group of Industries
Gallantt Group of Industries
Gallantt Group of Industries
Gallantt Group of Industries Gallantt Group of Industries Gallantt Group of Industries Gallantt Group of Industries Gallantt Group of Industries
gallant
Gallant
Gallant
Gallant
Gallant
Gallantt Group of Industries
  Financial Results Shareholding Pattern
  Annual Reports Investor Grievance Redressal
  Code of Conduct Corporate Governance Report
   Unclaimed Amount Of Investors Due For Refund  Notice Of Board Meetings
  Scheme of Amalgamation of GUL with GIL Notice Of General Meetings
  Scrutinizer report postal ballot and e-voting Chairman report court meeting
  Notices of Court Convened Meeting and Postal Ballot    


 GALLANTT ISPAT LIMITED

COMPANY OVERVIEW

Gallantt Ispat Limited (GIL) has become a well established public limited company, listed on both the premier stock exchanges of India viz. Bombay Stock Exchange Limited and National Stock Exchange. GIL is one of the companies of “Gallantt Group” which was incorporated in 2005 at Kolkata, with an object to carry on the business of manufacturers, producers etc. in all kinds of iron and steel products such as sponge iron, Pellets, pig iron, cast iron, bars, rods, billets, Captive power plant and wheat products. The group has come a long way since 1984, when it made a simple and humble beginning by setting up a small industrial venture, to presently running an integrated steel plant with captive power plant and flour mill with own private railway siding in the state of Uttar Pradesh with an investment of Rs.350 Crore, is the only one of its kind in the State of U.P., Bihar, Uttaranchal, Haryana and Delhi.

Gallantt Ispat Limited is one of the fast and aggressively growing organization, which has captured a substantial market of Sponge Iron, M.S., Billets, Re-Rolled products (TMT bars) and wheat flour products in the state of Uttar Pradesh within a short span of time. The group has about three decades of experience in steel and food processing industries and is well known by its brand name "Gallantt" which is ISO 9001:2008 & ISI certified. We are currently catering to various reputed clients such as Shalimar Corp Ltd., Viraj Construction Pvt. Ltd., Parasnath Developers, Omega Developers & Builders, BBD University, Uttar Pradesh Rajkiya Nirman Nigam and other State Government Departments.

The in house consumption of entire Sponge Iron to manufacture billets which is further rolled into TMT bars along with installation of captive power plant to utilize the waste heat improves profitability of the company thereby making it economically more viable. At GIL, success is measured in terms of customer satisfaction and quality that is built into every product. The value of commitment to quality is also cherished by each of our staff members. This growth has been achieved by a maintained strategy of continual investment in our manufacturing facilities and technology.  As a testimony to this "Gallantt" has become one the major secondary steel producers in India.

Installation of private railway siding for easy movement of raw material and finished goods has incurred lower logistic costs and proved enormous advantages to the Company and kept other similar business houses in the region very far and out of competition. Company has achieved all its past projections, sales target and posted a progressive margin year after year, in spite of sluggish market and low demand in the past recent years.

AMALGAMATION OF GALLANTT UDYOG LIMITED ("GUL") WITH THE COMPANY

Amalgamation of our group company, GUL with Gallantt Ispat Limited is under process. SEBI, BSE and NSE have given their NOC to the amalgamation. High Court order for amalgamation of Companies is expected to be received in January 2015. Gallantt Udyog has huge chunk of land of 1285892 Sq Ft. at prime locations in Gorakhpur. Market realization value of such land is approx Rs. 404 Crores.

We, at Gallantt, have always believed in the process of evolving & diversifying as the only way to succeed & move ahead. Keeping a view of this endeavor, we forayed into the field of Real state with our flagship project in GUL, Shalimar Gallant, Mahanagar, Lucknow. The same is being developed in a joint venture with one of the reputed developers in Lucknow, The Shalimar Group.
Shalimar Gallant is a high-end group housing being developed at a strategic location in the heart of Lucknow, Mahanagar. The Project is spread over an area of 15 acres and has been designed by Architects of international fame, M/s Arcop from Montreal Canada. The Landscapist for the project is MPFP Llc. from the U.S.A. and is headed by Mr. Paul Freidberg.

Shalimar Gallant as a project has been cautiously designed while keeping in mind the demographical requirement of the population in and around Lucknow; basis which , a combination of 2 BHK/ 3 BHK/ 4 BHK apartments have been designed to suit the needs of the buyers. The total buildup area of this project is a whopping 15 Lac Sq. Ft. which also makes us the largest project in terms of size inside the city centre of Lucknow.

The blending of both the Companies through amalgamation is like consolidation of our strength which will lead to the creation of better opportunities and sustainable value for all stake holders and create a great value addition to the assets and income of the company which in turn, will substantially increase worth of shareowners of Gallantt Ispat Limited besides many other benefits to be accrued to them.

The Merger of Gallantt Udyog Limited with the Company will remain a landmark event in our corporate history. Immediately after the merger we will not stop at just realizing the location and capacity benefits, instead, we will implement a turnaround strategy at the plants and will focus on attaining cost leadership through backward integration.

EXPANSION PLAN

Company sells substantial part of its production in U.P. Acknowledging the region's enormous potential for steel consumption, we have planned to expand the present installed capacity in a phased manner. Such a step would require a huge investment of Rs.400 crores within a short span for which Company is well equipped with.

Besides expanding the existing capacity company has also decided to install one Pelletization Plant for further backward integration of Sponge iron Unit. Pellet is the raw material of making sponge iron. As such, in house production of Pellets will further reduce the cost of production.

In consultation with the technical team of the Company and Consultants, management is of the view that an Investment of Rs. 400 Crore is likely to be made in the expansion plan. Cost of expansion shall be partly (Rs. 200 Crore) funded through Internal Accruals and partly through infusion of Equity (Rs. 200 Crore). An Equity worth Rs. 200 Crores shall be proposed to be arranged from public/private placement. Consequent upon the expanded capacity being starting operational by April 2016 and further starting production in Pellet Plant by April 2017, turnover and profitability of the Company will be increased substantially. Company is planning to fund the expansion in such a way that its day to day operation and fund requirement does not get adversely affected.

Existing infrastructure in manufacturing unit is sufficient to accommodate expansion plan.

Units

Existing Capacity

Addition

Total Capacity
In 2016-17

Addition

Total Capacit
In 2017-18

Pellet Plant

Nil

Nil

Nil

600000

600000

Sponge Iron

99000

99000

198000

79200

277200

Steel Melt Shop

118800

59400

178200

59400

237600

Rolling Mill

118800

118800

237600

NIL

237600

Captive Power Plant

16MW

16MW

32MW

9MW

41MW

Flour Mill

118800

NIL

118800

NIL

118800

Besides the existing real estate project of Lucknow and expansion in manufacturing unit, company has also planned to execute development of the existing land bank of 12,85,892 Sq.Ft. into group housing and commercial projects.

GOVERNMENT INCENTIVE TO THE UNIT:

Setting up of the integrated steel plant and flour mill in Gorakhpur, Uttar Pradesh also provides our Company with benefits like Interest free loan equivalent to Sales Tax Amount for a period of 15 years. Besides this, the unit is also eligible for 20% capital subsidy, 10% Infrastructural subsidy, 5% additional subsidy. Further, 65% of capital investment is available in the form of transport subsidy for a total period of 15 years to be reimbursed against the payment of freight of raw materials i.e. Iron Ore. Thus, the total subsidy available to our unit is 100%, equivalent to the total amount invested in the fixed capital of the unit.

STATUS OF GRANT

The State Government has disbursed part payment of Rs.24.28 crores of the subsidy on the investment made till May, 31, 2009 to the company as we were declared eligible for the subsidy and other benefits.  We have further submitted our Capital subsidy claim of Rs.98.34 crores adjusting Rs.24.28 crores already received, on the investment made up to May 31, 2012  and a claim of Rs. 95.54 crores as freight subsidy due up to June 2014 making a total of Rs. 193.88 crores as on August, 2014 which is pending for disbursement before the nodal agency (PICUP) of the scheme; but the State Government vide its order dated 18.11.2011 refused the balance payment of subsidies.  As this order of the U.P. Government was unjustified and unconstitutional, we have filed writ petition No.2067 of 2012 before the Hon'ble High Court Lucknow Bench, Allahabad.

Hon'ble High Court, Allahabad vide its order and judgment dated 12.,08.2013 on the above case, directed the State Government to take a fresh decision in the matter expeditiously and not to make any recovery of the unpaid VAT amount. Since State government has not taken any decision in compliance of the order of the Hon'ble High Court, company has filed a writ petition before the Hon'ble Supreme Court, and has reconfirmed the stay. The writ petition is pending for disposal.

EXCELLENT TRACK RECORD OF LOAN REPAYMENT

An amount of Rs.156 crores was sanctioned and disbursed to Gallantt Ispat Limited, Gorakhpur,  by State Bank of India and other consortium member banks which was due to be repaid by March 2016; but company has repaid entire loan well in advance in September, 2014; thus making the company debt free except for the working capital loan.

 

 

 

Gallantt Group of Industries



OUR PRODUCTS
Sponge Iron | M. S. Billets | Rolling Mill| Wheat Products