Prakash Industries (PIL) was incorporated on 31 Jul.`80 as Prakash Pipes and Industries. The company was previously known as PIL Ltd and after that the name was changed to Prakash Industries Ltd. The Company has been engaged primarily in the business of manufacture and sale of Steel Products and generation of Power.
PIL came out with a public issue in Nov.`91 to part-finance the sponge iron project being set up at Champa, Madhya Pradesh, with an installed capacity of 1.5 lac tpa. The company manufactures PVC pipes, B&W TV picture tubes and video tapes and cassettes. PIL has technical collaboration with Lurgi, Germany, for the sponge iron project. The plants are located in Uttar Pradesh, Madhya Pradesh (two), Punjab and Orissa.
In 1994-95, the company doubled the capacity of the sponge iron plant from 1.50 lac tpa to 3.30 lac tpa and also undertook a forward integration project to set up a stainless steel plant in Gujarat together with a rolling mill and a worsted woollen yarn EOU at Silvassa.
The company also took up the expansion of the iron-ore mining and crushing capacity. It came out with a rights issue in Jan.`96 to part-finance the above expansion-cum-diversification project. The company successfully commissioned the stainless steel project at Bharuch in 1995-96 and has also completed all other expansion and diversification projects.
The video tape division bagged the Elcina certificate of merit for excellent export performance for 1992-93. PIL is also implementing a 10-MW wind-farm project in Tamil Nadu.
The company which was referred to BIFR for rehabilitation package,IFCI has conducted the study and submitted the proposal of rehabilitation package and the company is awaiting for the approval.
The Company commissioned a new 25 MW Power Generating Plant during the year 2004-05. In 2005-06, it commissioned a Wire Rod Rolling Mill plant, which commenced commercial production. In 2006-07, it commenced operation of its Captive Coal Mines at Chotia.
The Company expanded its Structural Rolling Mill and has doubled, the capacity in 2007-08. It has taken a step forward in its objective to achieve complete integration in its entire product range in its steel operations by enhancing capacity in sponge iron division and also expanding its Steel Melting Capacity.
During the year 2011-12, the Company commissioned a Sponge Iron kiln resulting in further integration of capacities and substantial cost reduction. Further, it made additions in its power generation capacities also. These capacity additions have helped the Company achieve highest ever production in the Sponge Iron and Power segments. The first phase of 100 MW was commissioned. The operations of the TMT Bar Mill were also resumed during the later half of the year on revival of demand.
During 2012-13, the Company expanded its Ferro Alloys capacity by setting up additional furnaces, which resulted in optimum utilization of surplus power capacities. The Company made addition in its Ferro Alloys and Steel Melting Shop capacity during the year 2013-14 by setting up new furnaces, which resulted in achieving higher production in the divisions.
During year 2014-15, Company modernized its Steel Melting Shop by replacing some of the existing furnaces with more energy efficient furnaces, resulting in substantial cost savings and higher efficiency. The capacity utilization in the finished steel segment comprising Wire Rod and TMT Bars was satisfactory during the year. Availability of iron ore improved during the year leading to correction in iron ore prices, which resulted in substantial cost reduction in the operations. The operations of Captive coal mine were stable with uninterrupted production during the year. Captive coal mining operations and Rigid PVC pipes division also performed well.
During 2015-16, the Company completed retrofitting of Waste Heat Recovery Boilers, which led to additional 8 MW power generation without any additional cost. It installed capacitors and harmonic filters to improve power factor thereby saving costs.
During the year 2016-17, the Company expanded its Sponge Iron capacity by setting up one more Rotary Kiln of 0.20 MTPA, which had since commenced production. It added 15 MW power co-generation capacity during the year. It recommissioned Structural Mill at Raipur for manufacture of heavy and medium structurals to have a more diversified product mix.
Prakash Pipes Ltd became wholly owned subsidiary company during the financial year ended 31st March, 2018. During FY 2018-19, the PVC Pipe Undertaking was demerged from the Company into Resulting Company i.e., Prakash Pipes Limited (PPL ) with effect from the appointed date i.e. 1 st April, 2018. The Company modernized its fourth Rolling Mill at Raipur, Chhattisgarh to improve production of value added products i.e. wire rods. Also, it continued to improve the operational efficiencies In the Steel Melting Shop by setting up new energy efficient furnaces and modernizing some of the existing furnaces.
The Company had started PVC flexible packaging business under its PVC business segment which now transferred to Prakash Pipes Limited consequent upon demerger of the Company. Prakash Pipes Ltd. has ceased to be subsidiary Company of Prakash Industries Ltd. consequent upon demerger order dated 14th March, 2019 of National Company L aw Tribunal during the Financial Year 2018-19.
The new Sponge Iron Rotary kiln having capacity of 2 lacs tonnes per annum along with 15 MW power co-generation plant, started commercial production during the year 2019-20. The Company expanded its capacity in Steel Melting Shop by commissioning 4 nos. new energy efficient Induction Furnaces during the year and accordingly, the enhanced capacity stood at 1.176 million tonnes per annum. Further, it commenced the mining operations at its Captive Iron Ore Mine at Sirkaguttu in the State of Odisha and commercial extraction of the Iron Ore has started during the fourth quarter of the financial year.
The Company enhanced capacity in its Steel Melting Shop by commissioning two new energy efficient Induction Furnaces, which stood at 1.25 Mn tonnes per annum during 2020-21.