Electrosteel Integrated was originally incorporated as Electrosteel Integrated Limited on December 20, 2006 as a public limited company. The company commenced business on January 5, 2007. The company is promoted by Electrosteel Castings Limited for implementing a 2.2 MTPA integrated steel and D I pipe project in Jharkhand, India. It has entered into arrangements with investors and facility agreements with a consortium of lenders to finance the project. The board of directors of the company has on January 11, 2010, subject to approval from the shareholders of the company (shareholders meeting for which has been scheduled on March 25, 2010) and other regulatory approvals, considered and resolved that the name of the company be changed from Electrosteel Integrated Limited to “Electrosteel Steels Limited”.
The company is promoted by ECL to setup a 2.2 MTPA Integrated Steel and Ductile Iron Spun Pipes project in Jharkhand, India. Pursuant to the group’s strategy of focusing on identification of opportunities for backward integration, new DI pipe capacity as well as investment in steel sector, ECL has obtained mining blocks of iron ore and coking coal in the state of Jharkhand and has set up EIL for implementing the integrated steel and DI pipe plant.
ECL, the promoter, is in the business of manufacturing cast iron pipes for over four decades and ductile iron spun pipes since the last 15 years. For the fiscal year 2009, ECL recorded consolidated net sales of Rs 19,470 million. ECL has four manufacturing facilities, two located at Khardah and Haldia, both in the state of West Bengal, one at Elavur in Tamil Nadu and one coal washery plant at Parbatpur in the state of Jharkhand.
The company is setting up the proposed plant near Siyaljori village in Bokaro District of Jharkhand. The proposed plant will be based on Blast Furnace (BF) - Basic Oxygen Furnace (BOF) - Billet Caster and Hot Rolling Route and will produce 1.2 MTPA of long steel products, comprising 0.5 MTPA of 5.5-12.0 mm diameter wire rods in coil form and 0.7 MTPA of reinforcement bars in straight lengths and bundled in the range of 8-32 mm and plain rounds upto 60mm diameter. The plant will have a 0.33 MTPA DI pipe production facility in the same complex and will be provided with hot metal from the Blast Furnaces. The plant will also have production facilities for 0.27 MTPA of commercial billets and 0.40 MTPA of pig iron.
The company has acquired approximately 1,723.44 acres of land for the proposed plant, taking into account the scope for future expansion. The area of land for the proposed plant is approximately 600 acres with another 20-300 acres of land that would be required for construction of storage space for materials.