Palco Metals is an Indian aluminium recycler that has spent over a decade quietly supplying steel plants and wire makers from a single factory in Gujarat - a business built on turning scrap into specification-grade metal. The company was founded in 1965 and acquired by the current promoter group in 1996, who later moved manufacturing into a subsidiary, Palco Recycle Industries Ltd, and are now merging it back into the listed parent to create one streamlined operating entity. The recurring idea is simple: take a hard-to-source industrial input, make it reliably to the customer's exact recipe, and wrap it in service models that turn a commodity into a stickier relationship. # Business segments A single manufacturing engine, now being stitched together from a listed holding company and its operating subsidiary, with a forward-integration plan waiting in the wings. ## 1. Aluminium recycling and deoxidants: the group's entire operating business **The company melts aluminium scrap into wire rods, deoxidants and ingots for steel mills, chemical plants and electrical companies - and it sells not just the metal but the inventory-management service around it.** - **Two Properzi casting lines under one roof** - the plant at Ankhol, Kadi in Gujarat runs two continuous-casting lines with a combined capacity of 2,500 metric tonnes for wire rods, plus eight electric resistance furnaces adding another 500 metric tonnes of capacity for deoxidants, ingots and alloys. - **Scrap is the primary feedstock** - the main raw material is aluminium scrap, supplemented by primary ingots bought from domestic producers and imports, which makes consistent-quality procurement a critical success factor. - **Products are made to the customer's spec, not to a catalogue** - deoxidants are customised for steel refining and for chemical plants making aluminium chloride; ingots come in 5 kg, 8 kg and 20 kg sizes at 97-99% purity; wire rods are produced in diameters from 7.5 mm to 12.5 mm in coil sizes of one to two metric tonnes, and commercial-alloy wire rods are specially flipped and packed so steel plants can feed them straight into their process. - **Service models are the differentiator** - the company offers Vendor Managed Inventory, Pay-Per-Ton and other supply-chain concepts that management calls a competitive edge, because the underlying product is an industrial commodity where reliability and delivery matter as much as the metal itself. - **The moat is trust built since 1996** - barriers to entry include the capital cost, the industry experience and gestation period needed to hit consistent quality, established customer relationships, and the ability to source raw material steadily, all of which the subsidiary PRIL has accumulated over more than two decades as a reliable deoxidant supplier to the steel industry. ## 2. Aluminium extrusion: a second product line at a separate facility **A 3,600-tonne-per-year extrusion plant in Ramol, Ahmedabad pushes heated aluminium billets through dies to make profiles for windows, heat sinks and bus bars, sold to domestic industrial buyers and exported to the US, Europe and the Middle East.** - **Billets become profiles** - the manufacturing process takes aluminium logs, heats them and forces them through shaped dies to create sections, rods, bars, wires and pipes. - **Three end-markets, one plant** - the products go into architectural uses such as windows, doors and curtain walls, industrial applications like heat sinks and solar-panel frames, and electrical components including bus bars and conductors. - **Dual route to market** - sales flow both directly to B2B customers in construction, automotive, electrical and general engineering, and through a network of dealers and distributors, with exports reaching the US, Europe and the Middle East. - **A reclassified business description** - the FY25 annual report describes the company as being in aluminium extrusion products, a shift from every prior year when the group was described as a single segment of non-ferrous metal manufacturing and trading, suggesting the listed entity is repositioning its own narrative alongside the merger. # Forward integration: conductors, cables and downstream products **A planned expansion from making wire rods into making the conductors and cables those rods go into - and eventually a full suite of downstream aluminium products - all on the same Ankhol site.** - **Phase one is conductors and cables** - the project will be built within the existing Ankhol facility premises, using the infrastructure already in place. - **Strategic investors as customers-in-waiting** - the company is in discussions with potential collaborators who could also become buyers of current and future product lines. - **The long-term vision spans the aluminium downstream** - beyond conductors and cables, the plan includes extrusion profiles, rolled products, slugs and collapsible tubes, alloys, die-cast components and aluminium powder, a significant broadening from the historical recycling-and-deoxidant focus. # Group structure and partners **A listed shell is absorbing its only operating subsidiary, with a Dubai trading arm and a web of promoter-linked entities around it.** - **The listed parent was a holding company with minimal operating income** - Palco Metals Ltd had no manufacturing activity and reported operating revenue only in FY23 (Rs. 5.00 Lacs), while meeting administrative expenses from other income and its subsidiary PRIL did all the real work. - **PRIL is being merged in** - PML acquired 100% of PRIL by December 2024 and launched a Scheme of Amalgamation under Sections 230-232 of the Companies Act, with an appointed date of 1 April 2025; the NCLT Ahmedabad Bench allowed the first motion in June 2026 and directed shareholder and creditor meetings within 45 days. - **A Dubai subsidiary handles trading** - Palco Metals FZCO, a wholly-owned unit in the Jebel Ali Free Zone, trades aluminium products. - **Promoter entities hold over half the equity** - as of September 2025, Krishna Capital & Securities Ltd held 34%, Krishna Share Broking Services Private Ltd held 8.45%, and two other promoter-group firms held 4.75% each, together representing roughly 52% of total equity. - **An unusual off-balance-sheet arrangement exists** - after PRIL lost a Supreme Court debt-recovery case, the board advised forming an unregistered trust called the Essar Association Fund to pursue collective action, with PML handling the financial transactions for contributions and expenses on its behalf.