Tata Sponge Iron Limited (Tata Sponge) is among India’s largest manufacturer of merchant sponge iron with an annual production capacity of 3,90,000 MTPA. In FY18 the company has achieved its production rise by 6.95%, the report published by the company said.
In the Financial year (FY) 2018, Tata`s Sponge Iron capacity utilization improved to about 107% which was 100% in FY17.
The report said “During the year, we concentrated on increasing efficiencies of various processes without compromising on product quality. Our culture of innovation resulted in considerable bottom-line benefits.
On Year-on-Year (Y-O-Y) basis, the production of sponge iron reported at 4,17,094 MT in FY18 as against 3,90,000 MT in FY17. The daily average production rate during the FY18 was recorded at 1274 MT/day.
Further with increase in production, total sales of sponge iron also increase by 5% in FY18 to 413,506 MT against 392,782 MT in FY17.
Net profit after tax for standalone unit reported at Rs 14,086 Lakh in FY18, which was about Rs 5,874 Lakh in FY17, surge by 139.80% (approximately) Y-o-Y due to interest cost optimization, enhanced margins and growing business size.
Currently, the plant operates three kilns for sponge iron production using the TDR technology (with Lurgi Modification) & received an Environmental Clearance for producing sponge up to 4,25,000 MT.
The company sourced its entire requirement of iron ore from Tata Steel and 94% of coal of different grades from South Africa.
While the company also engaged in power generation with two power plants - 26 MW based on the waste heat recovery technique. In FY18, the total generation of power was 199.24 MU, recorded growth of 7.56% as against 185.47 MU during the previous year.
TATA sponge plant is located in Odisha, East ; selling material majorly in North East India as well as also involved in exports.