Godawari Power & Ispat Ltd. (GPIL) a public Ltd. Co., formally Ispat Godawari Ltd (IGL), belonging to HIRA Group of Industries, Raipur, C.G. was incorporated in 1999 to set up an integrated steel plant with captive power generation under the guidance of visionary leadership of Shri B. L. Agrawal, Managing Director, a techno commercial person (Qualified Engineer) having proven wide experience in commissioning & running of Cement Plant, Sponge Iron Plant etc., backed by a dedicated team of professionally qualified personnel under the stewardship of board of Directors having expertise in Engineering finance administration GPIL is listed co. with the nation stock exchange and Bombay Stock Exchange.

GPIL is a flagship Company of Raipur-based Hira Group of Industries, which is an integrated steel manufacturer and is having dominant presence in the long product segment of the Steel industry, mainly into mild steel wire. Today, GPIL is an end-to-end manufacturer of mild steel wires. In the process, the company manufactures sponge iron, billets, Ferro alloys, captive power, wires rods (through subsidiary company), steel wires, Oxygen gas, fly ash brick and last but not the least pallets. GPIL is also awarded rights for Iron Ore and Coal Mining for captive consumption, as a result of which, the company has managed to traverse the entire value chain (raw material to final product) in steel wires and is now a fully integrated manufacturer.

GPIL has come a long way since it started its operation in Raipur, Chhattisgarh as a sponge iron manufacturer in the year 2001. Over the last few years, the company has scaled up its capacity five fold and is today the third largest producer of coal based sponge iron in India and is one of the largest players in the mild steel wires segment. Not only has the company increased its scale during the aforesaid period, it has also moved up the value chain.

Milestones

• The Company crossed Rs 1000 crore marks in turnover. 2007-08 has seen an all around growth in the performance of the company, backed by higher volumes of production and better price realizations.
• The company has achieved consolidated revenue of Rs. 936 crore during the year under review as compared to revenue of Rs. 551 crore during the previous year, a growth of 70%.
• The consolidated net profit after tax grew by 82% to Rs. 99 crore as against Rs. 54 crore during the previous year.

Considering the fact that just two years ago, when we concluded our initial public offering our revenues were just 275 crore and net profit of Rs. 22 crore, the company has within a short span of time achieved significant growth in volume of business, revenue, profits and net worth and achieved annual compounded growth of over 80% in terms of revenue and profitability last during two years.

Future Plans

The growth drivers are still on with further plans to improve the operating margins by entering into backward integration through mining of iron ore and coal and venturing into value added manufacturing facilities by setting up iron pelletisation plant-a process to convert iron ore fines into pellets which can be used as a raw material for making sponge iron as replacement of sized iron ore.

GPIL has been granted mining lease for 2 iron ore mines at Ari Dongri and Boria Tibu in Chattisgarh. This would be on an area of 216 hectare & prospecting license for another iron ore mines with an area of 754 hectare in Chattisgarh.

GPIL has also been granted mining rights in consortium for mining of coal in Chattisgarh and the coal mines are being developed through special purpose Joint venture Company which has also achieved significant progress towards getting various regulatory approvals and coal mining operations are expected to commence some time in FY 2011.

To insulate against the hazards of price fluctuation due to Govt. fiscal policies, uncertainty of supplies ensuring energy securities and of all basic & primary inputs GPIL carried out backward integration by entering into mining of coal/Iron ore & generation of captive power and forward integration by acquiring wise drawing plants (RRL), promoting 10% subsidiary Co. for venturing into generating of merchant power, inverting in J. V. Companies for development of coalmines and setting up railway siding for captive use.

Consistent with the vision, GPIL, continually endeavors in mastering the techniques for improving the factors affecting there mission with environment, customers, benefits to society, public Image, philosophy & values, profitability & growth; pursuing innovation, Creativity, Diversity, environment excellence and change. We believe in blue ocean technology i.e., a sound strategy model to put technology to use in a commercial way inducting low cost process planning, preparing new technology road map benchmarking of process with world’s best to ensure desired outputs from the inputs.