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

 GROUP OVERVIEW

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 two integrated steel Plants with Captive Power Plant and Flour Mill in the state of Uttar Pradesh and Gujarat. 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 group thereby making it economically more viable. This growth has been achieved by a maintained strategy of continual investment in our manufacturing facilities and technology.

Installation of private railway siding at GIL for easy movement of raw material and finished goods has incurred lower logistic costs and proved enormous advantages to the unit and kept other similar business houses in the region very far and out of competition.

Gallantt Ispat Limited (GIL) and Gallantt Metal Limited (GML) are well established public limited companies, listed on both the premier stock exchanges of India viz. Bombay Stock Exchange Limited and National Stock Exchange of India Limited. GML came out with Initial Public Offerings of Equity Shares in the Year 2006 which was oversubscribed by three times. In the same way, GIL concluded its Initial Public Offerings of Equity Shares in the year 2010 which was oversubscribed and received an overwhelming response from the investors. Shares are traded in stock exchanges 'B' category index. With the dedicated team of professionals and other human forces both the Companies are reporting appreciating performance both in terms of turnover and profitability. Being well compliant Companies, GML & GIL aggressively work towards adopting principles of best Corporate Governance besides, bearing the objective of leverage, the best of talent and best of technologies to deliver superior products to the public at large.

Gallantt Group 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 and Gujarat 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". We are currently catering to various reputed clients such as Adani, Reliance, TATA, L&T, Sapur Ji Palan Ji, Shalimar Corp Ltd., Viraj Construction Pvt. Ltd., Parasnath Developers, Omega Developers & Builders, BBD University, Uttar Pradesh Rajkiya Nirman Nigam and various State Government Departments. Our commitment towards producing the best quality steel is well reflected in the fact that we attained certifications from various recognized organizations such as Bureau of Indian Standard ( ISI), ISO 9001-2000, and H & K (Germany) to name a few. Gallantt Group has been setting new standards of excellence by way of manufacturing quality products.

Acknowledging the enormous potential for steel consumption, the group has planned to expand the present installed capacity in a phased manner. Such a step would require an investment of approx Rs.700 crores within a short span for which Company is well equipped with. At Gallantt, we have evolved an agile business model, which can respond to the rapidly evolving market realities with speed and which has helped us consistently achieve volume guidance over the years. During the past few years, despite sluggish demand, our model of marketing achieved higher sales target.

We aim to make our presence felt on the infrastructural map of India. Our strong determination to grow and maintain high quality standards has won us many awards and accolades. We strive and stand committed to maintain this respectable position by catering to the requirements of our customers in the best possible way leaving no room for complaints.


AMALGAMATION OF GALLANTT UDYOG LIMITED (“GUL”) WITH GALLANTT ISPAT LIMITED (GIL)

Amalgamation of our group company, GUL with Gallantt Ispat Limited will open a new era in real estate business, as there is a big chunk of 1285892 Sq.ft. of land with market valuation of Rs.404 crores is available besides a 15 lac sq.ft. group housing project already under development at Lucknow in GUL. SEBI, BSE and NSE have given their NOC to this amalgamation. High Court order for amalgamation of Companies is expected to be received in January 2015.

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 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 locational and capacity benefits, instead, we will implement a turnaround strategy at the plants and will focus on attaining cost leadership through backward integration.

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 1285892 Sq.Ft. into group housing and commercial projects.

EXPANSION PLAN IN GALLANTT ISPAT LIMITED

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 Capacity
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

EXPANSION PLAN IN GALLANTT METAL LIMITED

Company has already taken an expansion plan as detailed below, with an investment of approx Rs.100 crores and part of it has already become operational and the rest shall be completed by end of 2015.
                                                                                            Capacity in MTPA


Products

Existing Capacity

Proposed

TOTAL

Sponge Iron

175500

49500

225000

Steel Melt Shop

178200

158400

336600

Rolling Mill

171963

158037

330000

Captive Power Plant

25 MW

8 MW

33 MW

KARNATKA PROJECT

A new project of 0.6 million ton Pellet Plant with an investment of Rs.200 crores at Hospet, Karnataka is under detailed planning and 100 acres of land for the same has already been procured.

GOVERNMENT INCENTIVE TO GALLANTT ISPAT LIMITED

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 GIL debt free except for the working capital loan.
An amount of Rs. 190 crores was sanctioned and disbursed to Gallantt Metal Limited, Gujrat,  by State Bank of India and other consortium member banks which was due to be repaid by September 2016; but company has repaid Rs.176 crores by October 2014 leaving just Rs. 14 crores which shall be repaid before March 2015 thus making GML debt free except for the working capital loan.

AWARDS

As a result of the extraordinary and enviably outstanding performance of the group within a short span of time, Uttar Pradesh "Udyami Samman - 2011" has been awarded by Zee Media House which was presented by Shriprakash Jaiswal, then Hon'ble Coal Minister, Government of India and again awarded for "Best Performing Company - 2013 in Uttar Pradesh" by Sahara Samay Media House presented by Shri Akhilesh Yadav, Hon'ble Chief Minister of U.P. Gallantt Group has been listed on India's Super Rich List at 188th position in 2014 by the Business World Magazine.

OUR VISION – “BUILDING TOMORROW…”

  • Creating a distinct status for ourselves in the Integrated Steel business.
  • Quality regarded as the best in the industry at minimum affordable cost; value for money.
  • Growth and values to drive the group towards our vision
  • Value creation for our share owners and value generation for our Nation.

OUR MISSION

  • Focus to Foster Personal growth in connivance with Group’s vision
  • Resource Optimization and Productivity improvement
  • Focus on Quality, Trust and Leadership
  • Sustainable development for society at large and our Stakeholder's.

OUR VALUES

The SPICE formula.  Gallantt group has survived with ease the toughest phase in the industry in last three decades.  Undoubtedly, last seven years of industry has been challenging.  It is our commitment towards better management, improvement, innovativeness and cost saving techniques what we regard as the SPICE commitment towards our Business, Environment and Shareowners which position us above the hierarchy.

The SPICE formula.

  • Service :  Our commitment to serve the nation by contributing to infrastructural growth is our primary objective.  As an organization, we have ensured prompt and proper service commitment to the entire shareowners.

  • Productivity & Professionalism:  Constant improvement on productivity is primary focus area for us.  We constantly thrive to learn about newer technology that will ensure improvement in productivity and overall efficiency.  We have bifurcated decision making structures and decentralized the power to encourage professionalism.  Our constant efforts have reaped benefits and key management personnel and employees have been participating towards friendly work culture and work on improving operation effectiveness.

  • Innovation: Process Innovation and Ensuring best technological update for our processes have helped to reduce cost and focus on better quality products.

  • Communication: Communication system is of primary importance. We have evolved an environment where internal matters relating to business and processes are communicated to the lowest hierarchy with ease. Our firm belief is when all individuals align their aspirations with our Vision the Success will be Re-engineered. The only way to channelize the vision is through strengthening communication systems.
Engineering and Eco-Friendly Environment: We have firm commitment towards our environment. Gallant Group commits itself for cleaner environment. Our commitment towards environment is equal to our commitment towards creating value for our stakeholder’s.

OUR COMMITMENT

We always look to create value for our shareholder’s. Gallant Ispat Limited is ready for next phase of growth and the firm has diversified to Infrastructure and Agriculture domain. Gallant group under its flagship Gallant Ispat Limited  acquired  land parcels which have grown multifold in terms of value. Our strategic intent to diversify into Real Estate through partnerships and act as key supplier to their needs serve both the purpose of surviving the business environment as well as in creating value for our Stakeholder’s.

The future cannot be ascertained but as the history suggests cyclical industries go through 6-7 years of consolidation and troughs bounce back even more sharply, we are hopeful that our next phase of growth will instigate our commitment towards better future. Keeping the future 2020 in mind we are considering massive expansion in a phased manner across 2015-2020.

 

Gallantt Group of Industries



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