Kalana Ispat Ltd IPO

About Kalana Ispat Ltd

Kalana Ispat Limited was originally incorporated as `Kalana Ispat Private Limited', a private limited company, under the Companies Act, 1956, with a certificate of incorporation issued under the hand of the Registrar of Companies, Gujarat, Dadra and Nagar Havelli, dated on October 15, 2012. Subsequently, the Company was converted from a private limited company into a public limited company, pursuant to a resolution passed in the extraordinary general meeting of its Shareholders held on December 04, 2023, and consequently, the name of the Company was changed to Kalana Ispat Limited, and a fresh certificate of incorporation consequent upon conversion from private company to public company dated December 21, 2023, was issued by the Registrar of Companies, Ahmedabad to the Company.

Global Scenario: 1. In 2022, the world crude steel production reached 1885.4 million tonnes (MT). World Steel Association in its Short-Range Outlook, October 2023 forecasts that steel demand will grow by 1.8% in 2023 and reach 1,814.5 MT after contracting by 3.3% in 2022. In 2024, steel demand will see a further increase of 1.9% to 1,849.1 MT. 2. India is the second largest producer of crude steel. China was world's largest crude steel producer in 2022 (1018.0 MT) followed by India (125.3 MT), Japan (89.2 MT) and the USA (80.5 MT). 3. Per capita finished steel consumption in 2022 was 221.8 kg for world and 645.8 kg for China. The same for India was 86.7 kg in 2022-23. Domestic Scenario: a) Steel is a de-regulated sector. The Government's role is that of a facilitator which lays down the policy guidelines and establishes the institutional mechanism/structure for creating conducive environment for improving efficiency and performance of the steel sector. b) In this role, the Government has released the National Steel Policy 2017, which has laid down the broad roadmap for encouraging long term growth for the Indian steel industry, both on demand and supply sides, by 2030-31.

The Company was engaged in trading metal scraps, which were procured through imports from various countries, sourced from shipbreaking yards and local merchants. As the business progressed, the Company ventured into manufacturing M.S. Billets and set up its manufacturing unit in Ahmedabad, Gujarat in the year 2015. Today, the Company is engaged in manufacturing M.S. Billets and Alloy Steel Billets/Ingots.

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