Prakash Ind starts production from 6th Sponge Iron Rotary Kiln

Prakash Industries Limited has commissioned its 6th Sponge Iron Rotary Kiln and has started commercial production. The commercial production from the new Sponge Iron Rotary Kiln with additional power will result in significant cost savings to the Company.

The Kiln has a capacity of 2 lakh tonnes per annum of sponge iron and 15 MW of power through co-generation by recovering the waste heat from the kiln. This will almost fully integrate the present steel operations and eliminate the Company's dependence on market sponge iron for its steel making.

The production in the Sponge Iron division was also higher by 20 per cent in FY19 over last year. In FY20, the production of sponge iron is set to increase led by commencement of the new kiln.

Earlier, in the month of July, the company had received the grant of surface right permission to operate Sirkaguttu Iron & Manganese Mines in Keonjhar District of Odisha. The said iron ore mine has geological reserves of around 9.9 million tones. With this captive sourcing, the company expects its operating margins and profitability would improve significantly.

On Thursday, the stock of Prakash Industries opened at Rs. 42.50. During the day, it made intra day high and low of Rs. 42.85 and Rs. 42 respectively.