Garg Furnace Ltd (530615) Share Analysis – Quality, Valuation Zone, Price Trend & DeciZen Rating

Garg Furnace (GFL) was set up in 1973 by Dharam Pal Garg and Jagdish Chand Garg. The company has emerged as one of northern India's leading alloy and non alloy steel manufacturer.

The company is the part of Garg Group of companies. Its other group companies are Garg Acrylic Limited and Sudhir Forgings Limited.

The GFL Induction Melting Furnaces are a class apart. For power-efficiency, product quality and yield GFL has different capacity of induction furnaces -each embodying the latest in design and technology. At present the company is manufacturing Alloy and non Alloy steel ingots.

Garg Furnace's has 50,000 sq. yards manufacturing plant with power-efficient induction furnaces, the GFL Induction Melting Furnaces are a class apart. For power-efficiency, product quality and yield GFL has different capacity of induction furnaces -each embodying the latest in design and technology.

The company has fully automatic wire rod mill and rolling mill manufacturing; TMT bars for the construction industry as well as wire rods, ms rounds and ms square. The company follows modern production processes and superior on-line quality control measures.

The company has its own casting facilities which  represents a cross-section of industry - Railways, Defense, Thermal and Hydel Power Plants, Sugar Mills, Cement and Fertilizer Plants, Mines, Light Engineering Industry, etc.

The company has its own forging facilities having drop hammers, presses and machining facilities supplying forgings of different components viz. Auto components like all types of Bevel gears-Pinions, Levers. Crank- Cam Shafts, Crosses, Crown wheels etc. and forgings used in construction like Scaffoldings, Thread bars (Dywidag thread) and Fitments like Wing nuts of similar type. In Addition to that we manufacture Nuts, Bolts, Stouts, Long thread bars upto 20ft length and different types of washers.

At Garg Furnace Limited quality control is a credo. This commitment starts with the raw material input. For instance, imported steel scrap is preferred as raw material. Then, there's a special quality control lab, which constantly monitors quality at each and every stage of manufacture. All the critical manufacturing processes occur In-house, all under one roof, quality products are manufactured.

A testimony Garg Furnace Limited's success is its impressive list of clients- representing a cross-section of industry - Railways, Defense, Thermal and Hydel Power Plants, Sugar Mills, Cement and Fertilizer Plants, Mines, Light Engineering Industry etc. etc. - most of whom have been steadfastly loyal to GFL products for over twenty years.

GFL has now stepped into the export market, exporting steel casting to the Middle East Countries. In the future, exports will be a major thrust area for GFL.

At present the Company is manufacturing Alloy and non Alloy steel ingots that includes:

• Cross for LCVs, trucks and tractors.
• Bevel-pinions for all tractors, cars, and Light Commercial Vehicles
• All sorts of gears Viz. first, second, third, fourth, reverse and other high speed gears.
• Steering arm for all the automobiles
• TMT Rods: in the sizes of  M.S. Round in 25mm to 100mm and M.S. Strip in all sizes.
• Wire Rod: in the size of 6mm to 16mm.

Different divisions of the company include:

• Casting Division:   Since its inception the company has been serving the nation by meeting the requirements of casting components for strategic industries like Indian Railways, Thermal and Hydel Power plants, Fertilizer, Sugar and Cement plants & Mines etc. GFL in its casting division, manufacture various types of Steel and Alloy Steel Casting in different IS/BS/AISI specifications in the weight range of 20 Kgs. to 3000 Kgs. (single piece).
• Rolling Division:  Ludhiana is the home of small scale units, engaged in the manufacture of Bicycles, Sewing Machines and Hosiery Machinery parts. M.S. round and strips are the basic raw-material for these units. To provide better quality materials to this sector, GFL has installed its own rolling mill, where Carbon Steel round/strip of different sizes is manufactured. Due to superior quality, competitive prices and a wide range, the company's products have an edge in the market.
• Forging Division: The company provides products in finished as well as forged condition. It produces Bevel-pinions for all tractors, cars, and Light Commercial Vehicles. The company is supplying them in forged and spheriodised condition as well as machined.