BSE Code: 532677
CMP: Rs.8.89
Face Value: Rs.10
EPS: Rs.3.59
Div: 5%
Book Value: Rs.24.12
P/E: 2.48
Market Cap: Rs.31.22
The growing demand in the alloy & metal and infrastructure sector resulting in the Industrial growth was the vision of Group Chairman, Shri Vimal Kumar Patni, coupled with the Government's “Look East Policy” thus providing many more opportunities in West Bengal in particular. Vikash Metal & Power Ltd, the Fully Computerized and Automated Integrated Steel Plant is a part of the esteemed Impex Group.
An Impex Group Company, Vikash Metal & Power Ltd.(VMPL) was Incorporated in 1996 & is in the manufacturing of Sponge Iron , MS Billets,TMT Bars & Strips. The group’s product range spans a wide array of Structural Products to Ferro Alloys serving the nation with pride.
Vikash Metal & Power Ltd, manufacturing sponge iron in its unit having capacity of 100 tpd x 4 kiln and MS Billets in its induction furnace capacity of 8 MT x 3 along with Concast Plant serve large section of the Structural and Infrastructure industries, with the slogan 'From Structure To infrastructure”, using world's most advanced technology, the TEMPCORE process under license from Centre De Recherches Mettalurgigues (CRM) Belgium. “Vikash” brand TMT bars are supplied to leading construction companies and turnkey projects. Apart from receiving the prestigious ISO 9001-2000 SGS certification, the company has also received accreditation by UKAS Quality Management System, Geneva, Switzerland.
Ensuring quality, the group with its Vikash brand TMT Bars has created high demand in the infrastructure sector and turnkey projects believing in Values, Trust, Respect and Fellowship.
• The Commercial production of Ferro Silico Managenese & Ferro Managanese has started from October 18, 2008.
• Vikas Metal and Power Ltd (VMPL) is looking for opportunities to acquire /enter into JV / alliance with any other entity engaged in the same line of business to reap more profits.
• VMPL had started commercial production from its Hot Rolling Mill having a capacity of 1,50,000 MTPA since September, 2007 while company has started the commercial production of additional 65000 MTPA Sponge Iron Plant & 85500 MTPA MS Billet Plant in June, 2007.
• VMPL has some more expansion plans which includes: (a) Pelletization Plant: 487500 MTPA, (b) MS Billet Plant: 28500 MTPA and (c) Brequetting Plant: 60000 MTPA. Apart from this company is in the final stage of executing its 10 MW Waste Heat Recovery Power Plant.
• VMPL’s Waste Heat Recovery based captive power plant has been registered under CMD project with UNFCCC. The captive power plant is based on waste heat recovery module whereby flue gas released by the sponge iron kilns is used to generate steam in the boiler thereby replacing fossil fuel for generating power. It will involve reduction of 55,000 metric tones of CO2 equivalent per annum, which will lead to a substantial revenue inflow by selling CE R credits, which will accrue to the company for a period of 10 years.
• VMPL has signed an MOU with Bihar State Electricity Board for execution of 2X250MW thermal project in Begusarai. This Project is requiring an investment of Rs.2500 crore which will be funded through a mix of debt and equity and is likely to be commissioned by 2011. The company has approached the Union coal Ministry for coal blocks & has been allotted 300 acres of land by the Bihar Industrial Area Development Authority at Bagusarai. The company even has future expansion plans for setting 2000MW power plant in phases.
• Escalating Raw Material Prices: Raw Materials comprise of around 76 % of Company’s sales.
High prices of Iron ore & Steel Scraps may put some pressure on company’s margins, but during last year company has been successful to offset this pressure by increasing the Sponge iron prices & shifting its focus on MS ingots. This year the raw material prices are likely to remain low.
• Slowdown in the global economy: Steel is a cyclical industry & dependent on growth of many sectors viz. Automobile, Infrastructure & construction. However India is concentrating on infrastructure development & a lot of development is to be seen in the short term as well as in the long run so demand for steel looks intact.