- Stock Valuation and Financial Performance

Mittal Corp was incorporated on July 5, 1985 as Jewel Steels Limited, a public limited company under the Companies Act, 1956. The name of the company was changed to Jewel Seamless Limited following a special resolution passed by the members on July 25, 1995 and a fresh certificate of incorporation dated August 28, 1995 was issued by the Registrar of Companies (ROC), Madhya Pradesh at Gwalior. The registered office of the company was shifted from the state of Madhya Pradesh to Maharashtra and a certificate of registration of the Company Law Board’s order in this regard was issued by the RoC, Maharashtra at Mumbai on April 9, 2007. The name of the company was changed to Jewels Seamless Limited following a special resolution passed by the members on September 6, 2008 and a fresh certificate of incorporation dated September 16, 2008 was issued by the RoC, Maharashtra at Mumbai. The name of the company was changed to Mittal Corp Limited following a special resolution passed by the members on November 24, 2008 and a fresh certificate of incorporation dated December 16, 2008 was issued by the RoC, Maharashtra at Mumbai.

The company was incorporated and promoted by Kuldeep Bishnoi and Seema Bishnoi. In the 1990s, they had set up a seamless pipe manufacturing facility at Unit I. However, owing to a general recessionary trend in the steel markets in the 1990s, the enterprise was not very successful. In the year 2002, Karan Mittal became the promoter of the company and assumed responsibility for conducting the business affairs of the company. In the period between financial years ending 1995 and 2001, the company was not into commercial operations and no profit and loss accounts were prepared in this period.

The company currently has an installed capacity of 90,000 TPA to manufacture stainless steel billets and rolling the same into flats / rounds in its Steel Melting Shop and Rolling Mill, spread over 17 acres at Unit I. Further, to the existing installed capacity for production of billets, i.e. 90,000 TPA, it is in the process of executing its expansion plan to increase the melting capacity of the Steel Melting Shop to the extent of 120,000 TPA. This exercise that started in September 2009 is expected to be completed by March 2010.

The expansion was undertaken to cater to the increasing demand for SS flats at a capital cost of Rs 15 crore that has been financed partly by term loans to the extent of Rs 10 crore and the rest through internal accruals.

Further, the company proposes to set up a wire rod producing facility in close proximity to its existing plant, with a production capacity of 150,000 TPA. Setting up of the proposed project is one of the objects of this proposed issue.

Business area of the company

The company is engaged in the manufacturing of stainless steel billets, blooms, rolled flats of various thickness, width and lengths.

Group companies

• Parks Sales
• Parks Infoway
• Parks Holdings
• KN Metals
• Parks Webtech
• Sphinx Investments
• Mittal Enterprises
• Mahalaxmi Exim
• Future Stainless

Milestones

• 2002: Jewel Seamless Tubes unit taken over by Karan Mittal and his team.
• 2003: The company entered into a franchisee agreement with a mineral water brand ‘Oxyrich’. This venture was discontinued in the financial year ending 2005.
• 2004: New management diversifies into mild steel ingots and billets by installing balancing equipments with 8 tons furnace. Project was completed in record time of 6 ½ months.
• 2006: Mittal gets into stainless steel manufacturing billets, slabs, sheets, etc. The company expands from capacity of 18000 MT to 60,000 MT per annum.
• 2006: The company plans an expansion outlay of Rs 28 crore. Project completed in record eight months.
• 2007-08: The company sets up rolling mill to get into further value addition. Project comes into commercial production within six months flat.
• 2007-08: The company installs oxygen plant for captive use to save cost and increase contribution.
• 2008-09: The company further expands from 60000 MT to 90000 MT by installing another 20 tonnes furnace.
• 2009-10: The company starts installing balancing equipments with CAPEX of Rs 15 crore to increase the capacity to 120000 MT.
• 2009-10: The company puts on paper the plan for a greenfield wire rod mill of 150,000 MT per annum with a fund outlay of approximately Rs 125 crore. Completes land acquisition.