AML Steel Limited is the flagship company of the group, which was established during 1993 to set up a plant to manufacture video and audiocassettes, which was considered to be one of the largest plants for such products in the whole of South India. Later, it was decided to diversity into steel making and therefore it was conceptualized to set up a steel plant in Pondicherry near Chennai.
As an offshoot of the plan, first ever project to manufacture steel ingots out of scrap iron was commissioned near Pondicherry where abundant and uninterrupted power supply is available. Rest is a success story where AML Steel made it''s presence in the steel sector.
In order to enrich presence in the steel sector, AML Steel Ltd., during the year 2003 made some overseas acquisitions by name Ashok Steel Industries Sri Lanka. Around the same time another acquisition too was made near Pondicherry under the name of Ankit Ispat Pvt Ltd., All the above companies have been fully turned around and started generating good cash returns.
In order to further enhance it''''s knowledge and presence in steel sector AML Steel Ltd., has set up a company called AML Steel & Power Ltd., by which as per the MOU signed with State of Jharkhand, Ministry of Mines, Government of India has allocated 384 acres of Iron ore mines with the deposit of about 40 million metric tonnes on a 20 year lease vide their letter dated 16th August 2005 and negotiations are on for further allotment of mines upto 150 million metric tonnes to meet our additional requirements. Having acquired land near Jamshedpur project construction is underway for commissioning by middle of 2006.
New Integrated Steel Complex
In order to forge ahead it''''s presence in Steel sector AML Steel has been looking around for setting up a latest state of art plant to manufacture sponge iron with captive power, captive mines for iron ore as well as coal. Finally it''''s search ended with location called Saraikela which is strategically located for supply of iron ore as well as abundant supply of water. It is also well connected with Road transport as well as Rail transport. Sufficient land too was available in the above location and therefore AML Steel promptly zeroed on the above location and acquired the required stretch of land for putting up an integrated steel plant.
An MOU was signed with State of Jharkhand wherein Government will allocate iron ore mines as well as coal mines towards uninterrupted supply of raw materials for running this project based on the principle of least cost on logistic movements.
A detailed technical cum financial feasibility study was conducted, based on which location of the project, technical designs, capacity and the concept as a whole was approved. Various vendors for a different jobs were identified and the contracts are in the process of being finalized.
On full commissioning of the entire project, it should produce 2 Million MTs of Steel billets, TMT Bars, Structural steel etc. While finance has already been tied up for 1st phase of the above project further finance arrangements shall be done on completion of 1st phase. The above capacity shall be achieved on High Value Addition principle by engaging in captive iron ore mining, captive coal mining and captive power production and to ensure least cost to the overall cost of production.