JSW Ispat Steel
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Ispat Steel Ltd (ISL) was an Indian company with operations in iron, steel, mining, energy and infrastructure. In 2012, it was acquired by JSW Steel. The company had two integrated steel plants, at Dolvi and Kalameshwar in the state of
Maharashtra Maharashtra () is a state in the western peninsular region of India occupying a substantial portion of the Deccan Plateau. It is bordered by the Arabian Sea to the west, the Indian states of Karnataka and Goa to the south, Telangana to th ...
. The Dolvi complex housed the 30
lakh A lakh (; abbreviated L; sometimes written lac) is a unit in the Indian numbering system equal to one hundred thousand (100,000; scientific notation: 105). In the Indian 2, 2, 3 convention of digit grouping, it is written as 1,00,000. F ...
tonne per annum hot rolled coils plant, which used the Conarc process for steel making as well as the compact strip process. The Dolvi complex has a captive port located close to it on the Amba River, which opens into the
Arabian Sea The Arabian Sea () is a region of sea in the northern Indian Ocean, bounded on the west by the Arabian Peninsula, Gulf of Aden and Guardafui Channel, on the northwest by Gulf of Oman and Iran, on the north by Pakistan, on the east by India, and ...
, that can handle barges and mini-bulk carriers up to 4,000 Dead Weight Tonnage (DWT). Moreover, a jetty adjoining the complex is capable of handling cargo of up to 1
crore Crore (; abbreviated cr) denotes the quantity ten million (107) and is equal to 100 lakh in the Indian numbering system. In many international contexts, the decimal quantity is formatted as 10,000,000, but when used in the context of the India ...
(10 million) tonnes per annum. It has a
direct reduced iron Direct reduced iron (DRI), also called sponge iron, is produced from the direct reduction of iron ore (in the form of lumps, pellets, or fines) into iron by a reducing gas which contains elemental carbon (produced from natural gas or coal) and/o ...
– sponge iron plant,
blast furnace A blast furnace is a type of metallurgical furnace used for smelting to produce industrial metals, generally pig iron, but also others such as lead or copper. ''Blast'' refers to the combustion air being supplied above atmospheric pressure. In a ...
, and compact strip production. The integrated steel plant at Kalmeshwar produced galvanised sheets and products and cold rolled coils. The Kalmeshwar complex houses a total of three advanced plants – a 3.25 lakh tonnes galvanised plain/galvanised corrugated plant, a 3.3 lakh tonne Cold rolled coils plant and a 60,000 tonne colour coated sheets plant. It had a
cold rolling In metalworking, rolling is a metal forming process in which metal stock is passed through one or more pairs of rolls to reduce the thickness, to make the thickness uniform, and/or to impart a desired mechanical property. The concept is simi ...
mill,
galvanization Galvanization ( also spelled galvanisation) is the process of applying a protective zinc coating to steel or iron, to prevent rusting. The most common method is hot-dip galvanizing, in which the parts are coated by submerging them in a bath of ...
line, and a colour coating line. Ispat was the only steel maker in India and among a few in the world to have total flexibility in the choice of the steel making route - either via blast furnace or by electric arc furnace. Ispat means
steel Steel is an alloy of iron and carbon that demonstrates improved mechanical properties compared to the pure form of iron. Due to steel's high Young's modulus, elastic modulus, Yield (engineering), yield strength, Fracture, fracture strength a ...
in
Hindi Modern Standard Hindi (, ), commonly referred to as Hindi, is the Standard language, standardised variety of the Hindustani language written in the Devanagari script. It is an official language of India, official language of the Government ...
and the
Bengali language Bengali, also known by its endonym and exonym, endonym Bangla (, , ), is an Indo-Aryan languages, Indo-Aryan language belonging to the Indo-Iranian languages, Indo-Iranian branch of the Indo-European languages, Indo-European language family. ...
.


History

The company was founded in 1984 as Nippon Denro Ispat Limited by Mohan Lal Mittal. It was granted the first industrial license by the
Government of India The Government of India (ISO 15919, ISO: Bhārata Sarakāra, legally the Union Government or Union of India or the Central Government) is the national authority of the Republic of India, located in South Asia, consisting of States and union t ...
for manufacturing galvanised plain/corrugated sheets. IIL was set up as a cold rolling reversing mill, in collaboration with
Hitachi () is a Japanese Multinational corporation, multinational Conglomerate (company), conglomerate founded in 1910 and headquartered in Chiyoda, Tokyo. The company is active in various industries, including digital systems, power and renewable ener ...
of Japan, to manufacture a wide range of cold rolled carbon steel strips. In 1994, the family split its interests: the eldest son,
Lakshmi Mittal Lakshmi Niwas Mittal (; born 15 June 1950 in Sadulpur, Rajasthan, Sadulpur, Rajasthan, India) is an Indian steel magnate, based in the United Kingdom. He is the executive chairman of ArcelorMittal, the world's second largest steelmaking company ...
continued managing the international operations as Ispat International (later called
Mittal Steel Company Mittal Steel Company N.V., incorporated in the Netherlands and headquartered in the United Kingdom, was a steel producer. In 2006, it produced 110.5 million tonnes of steel and had annual production capacity of 138 million tons of steel. In August ...
), while
Pramod Mittal Pramod Mittal (born 1 September 1956) is an Indian businessman who was the chairman of Ispat Industries Limited (now JSW Ispat Steel). Life and career He was married to Sangeeta Mittal. The Couple has three children; Vartika, Shrishti and Di ...
and Vinod Mittal, the younger brothers, focused on steel and other businesses in
India India, officially the Republic of India, is a country in South Asia. It is the List of countries and dependencies by area, seventh-largest country by area; the List of countries by population (United Nations), most populous country since ...
. In 1994, it commissioned the world's largest gas-based single mega module plant for manufacturing
direct reduced iron Direct reduced iron (DRI), also called sponge iron, is produced from the direct reduction of iron ore (in the form of lumps, pellets, or fines) into iron by a reducing gas which contains elemental carbon (produced from natural gas or coal) and/o ...
(sponge iron), at its
Maharashtra Maharashtra () is a state in the western peninsular region of India occupying a substantial portion of the Deccan Plateau. It is bordered by the Arabian Sea to the west, the Indian states of Karnataka and Goa to the south, Telangana to th ...
-based Dolvi plant, with a capacity of 1.6 million tons. In 1995, hot strip mill with Continuous Strip Processing (CSP) technology was installed at Dolvi. In 1998, an integrated steel plant for the production of hot rolled coils was launched, using technologies such as the Conarc Process for steel making and the Compact Strip Process. The company continued to increase capacity in the early 2000s; in 2003, a 2-million tonne blast furnace was commissioned and sponge iron capacity was increased from 1.2 mtpa to 1.4 mtpa. During the
early 2000s recession The early 2000s recession was a major decline in economic activity which mainly occurred in developed countries. The recession affected the European Union during 2000 and 2001 and the United States from March to November 2001. The United King ...
, heavy losses forced the company, as well as Essar Steel and JSW Steel, into debt restructurings. However, the company was not able to implement a turnaround and in 2010, losses reached Rs 2,500 crore. In 2010, JSW acquired a 41.57% interest in the company for
The Indian rupee sign ⟨₹⟩ is the currency symbol for the Indian rupee (ISO 4217: INR), the official currency of India. Designed by D. Udaya Kumar, it was presented to the public by the Government of India on 15 July 2010, following its ...
2157
crore Crore (; abbreviated cr) denotes the quantity ten million (107) and is equal to 100 lakh in the Indian numbering system. In many international contexts, the decimal quantity is formatted as 10,000,000, but when used in the context of the India ...
and renamed it JSW Ispat Steel. It acquired the remainder of the company in 2013 based on an enterprise value of $3 billion. The acquisition was described as a "bailout" for Ispat Steel.


References

{{JSW Group 1984 establishments in Maharashtra Companies based in Maharashtra Companies established in 1984 Companies formerly listed on the Bombay Stock Exchange Companies formerly listed on the National Stock Exchange of India JSW Group Steel companies of India