The Sambalpur manufacturing plant is located in the state of Odisha and consists of an integrated steel plant with an installed metal capacity of 2.90 MTPA (including intermediate and final products), as of December 31, 2020.
As of December 31, 2020, the manufacturing plant comprises of two pellet plant, seven direct reduced iron kilns for sponge iron (two kilns of 350 TPD each, two kilns of 100 TPD and three kilns of 500 TPD each), 12 billet furnaces (four furnaces of 18 TPH each, four furnaces of 8 TPH each and four furnaces of 12 TPH each), one rolling, structural, wire rod and pipe mill each and seven ferro alloy furnaces (two furnaces of 6.0 MVA each, two furnaces of 9 MVA each and three furnaces of 11 MVA each).
The following table highlights the installed capacities as of December 31, 2020 and proposed capacity expansions at our Sambalpur manufacturing plant:
|Particulars||Existing Installed Capacities as of December 31, 2020*||Proposed Capacity Expansion*|
|Pellet||1,200,00 TPA||600,000 TPA|
|Sponge iron(1)||792,000 TPA||561,000 TPA|
|Billet(2)||401,280 TPA||461,200 TPA|
|Rolling mill and wire rod mill||320,000 TPA||510,000 TPA|
|Structure mill||60,000 TPA||–|
|Pipe mill||30,000 TPA||–|
|Ferro alloy(3)||98,000 TPA||14,000 TPA|
*As certified by Kalyan Bhattacharya, Chartered Engineer, by certificate dated February 15, 2021.
• The information relating to the existing installed capacity of our manufacturing plant as of December 31, 2020 and proposed capacity expansion of our manufacturing plant are based on various assumptions and estimates that have been taken into account for calculation of the installed capacity. These assumptions and estimates include the standard capacity calculation practice of the steel industry after examining the calculations and explanations provided by our Company and the capacities and other ancillary equipment installed at the manufacturing plant.
• The assumptions and estimates taken specifically into account include the following:
(1) sponge iron (direct reduced iron): capacity of each kiln in TPD X 330 days per year;
(2) billet: capacity of each furnace in TPH X (24 hours per day/ heat cycle) X 330 days per year; 1 heat cycle = 3 hours;
(3) ferro alloy products: furnace with 1 MVA capacity is equivalent to 1,555.56 TPA. The installed capacity of ferro alloy products may vary depending on the type of ferro alloy produced.
Production Management and Inventory Control
We plan our production and manage the inventory level of our finished products on a monthly basis based on projected sales volumes and make periodic adjustments to the production schedule and volumes based on actual orders received. We closely supervise our daily production and aim to maintain suitable inventory levels of raw materials and finished goods at each of our integrated manufacturing facility. We maintain different inventory levels for raw materials depending on lead time required to obtain additional supplies.
We have put in place a system of internal controls to help ensure that all assets are safeguarded against loss from unauthorized use or disposition, and that transactions are authorized, recorded and reported correctly. In addition, the internal financial control and reporting process ensures robust financial monitoring and ensures compliance. We deploy standard policies and procedures, covering relevant business aspects, which are designed to facilitate effective oversight on business operations. Our internal control system is periodically reviewed by the management, and supplemented by an extensive program of internal and external audits. Financial and other records are reliable for preparing financial information, maintaining accountability of assets and providing reliable management information.
Occupational Health and Safety
Our activities are subject to the health and safety laws and regulations of India, which govern, among other things, the handling, storage and disposal of hazardous substances and wastes, and employee health and employee safety.
Our Sambalpur and Jamuria manufacturing plants have obtained quality certifications such as ISO 9001:2015, ISO 14001: 2015, ISO 45001: 2018 and ISO OHSAS 18001:2007.
We continue to ensure compliance with applicable health and safety regulations and other requirements in our operations. We aim to conduct our operations free from accidents and occupational hazards. We have implemented various practices at our operational units to ensure the safety of our people, including contractors and temporary labourers. Further, we strive to provide a safe working ecosystem for our people and accordingly, aim to follow all statutory requirements.
We also have a safety, health and environment manual. Some of the salient features of this manual are as follows:
- providing health and safety training across all levels of organisational hierarchy;
- identifying and mitigating occupational health and hygienic hazards;
- actively engaging with contractors, suppliers and business partners for safe performance on their part;
- reporting and investigating all accidents to prevent recurrences; integration of health and safety aspects in all business decisions; and periodical health and safety audit.