Equity research on Nippon Denro Ispat Ltd; The ICFAI-Securities Research centre

Abstract

The company is a member of the Ispat group, a diversified group of companies principally engaged in the production of steel and related products which is controlled by the Mittal family. After its maiden venture in Indonesia, the company has covered the globe with equal successes in India, Trinidad & Tobago, Mexico and Canada. From a pioneering start in 1978, the Ispat group has made tremendous strides and now has manufacturing capabilities aggregating to a capacity of 6 million tons of steel, making it one of the world’s largest steel producers. The total assets controlled by the group today, is over US $ 4.0 billion and the annual turnover of the group is over US $ 1.5 billion. The group’s products vary from US $ 20 per ton Iron ore to US $ 1,000 per ton Special Cold Rolled Sheets, Alloys, etc., thus providing a big value addition within the group. Over 60% of the Group sales are by way of exports in a highly competitive world market, emphasising the high quality of its products, excellent customer services and time bound execution of contracts. Incorporation of state-of-the-art technologies has helped the Group sustain its individuality and competitive advantage wherever it goes.