Vaswani Industries Limited is an integrated steel and power manufacturer headquartered in Chhattisgarh, India. The company operates a diversified business model that bridges heavy industrial manufacturing with sustainable energy generation. As of **March 31, 2025**, the company has streamlined its corporate structure to focus on core operations, having divested its holdings in **Shubh Infrastructures Limited** and reduced its stake in **C.G. Ispat Private Limited** to **8%**. --- ### **Integrated Iron & Steel Manufacturing Operations** The company operates a sophisticated integrated facility focused on the production of **Sponge Iron** and **Steel Billets**. While the business is subject to market price realizations, recent years have shown a steady climb in capacity utilization and total output. | Segment | Metric | FY 2023-24 | FY 2024-25 | | :--- | :--- | :--- | :--- | | **Sponge Iron** | Installed Capacity | **90,000 MT** | **90,000 MT** | | | Actual Production | **83,927 MT** | **81,913 MT** | | | Capacity Utilization | **93.25%** | **91.02%** | | **Steel Billet** | Installed Capacity | **66,000 MT** | **66,000 MT** | | | Actual Production | **44,341 MT** | **53,769 MT** | | | Capacity Utilization | **67.18%** | **81.47%** | | **Total Combined** | **Actual Production** | **128,268 MT** | **135,682 MT** | | | **Overall Utilization** | **82.22%** | **86.97%** | **Strategic Capacity Expansion:** To capitalize on rising domestic demand, the company is executing a major scale-up of its downstream capabilities: * **MS Billet Expansion:** Capacity increased from **66,000 TPA** to **1,50,000 TPA** (Completed **June 2025**; **Consent to Operate** granted **Oct 2025**). * **Rolling Mill:** A new **1,50,000 TPA** unit has received Environmental Clearance, marking a move toward finished steel products. * **Product Upgradation:** The Billet Plant is being upgraded to produce **special grade steel**, aimed at insulating the company from the volatility of the standard commodity market. --- ### **Energy Self-Reliance & Renewable Transition** A core competitive advantage for Vaswani Industries is its diversified power portfolio, which utilizes industrial waste and solar energy to lower the cost of steel production. **Thermal & Waste Heat Recovery:** The company employs Waste Heat Recovery (**WHR**) and Atmospheric Fluidized Bed Combustion (**AFBC**) systems. In **FY 2024-25**, a new **Siemens turbine** (investment of **₹313.40 Lacs**) was commissioned as the primary driver of generation, with the older unit retained for standby capacity. **Solar Power Portfolio:** The company is developing an aggregate **66.50 MWp Solar Power** portfolio in Chhattisgarh: * **Gandai Project:** **16.25 MWp** fully operational as of **January 2025**. It generated **8.64 million units** in its first four months. * **Mohbhatta (Phase I):** **13.75 MWp** received synchronization permission in **December 2025**. * **Mohbhatta (Phase II):** **36.25 MWp** expected operational by **December 2025**; EPC handled by **SR Corporate Consultant**. **Total Power Generation:** Increased from **67.98 million units** (FY 23-24) to **70.99 million units** (FY 24-25). --- ### **Intellectual Property & Technical Know-How Management** Beyond physical manufacturing, the company operates a specialized division focused on the acquisition and commercialization of **Intellectual Property (IP)**. This segment drives operational efficiency through: * **IP Acquisition:** Applying for and purchasing **patents, brevets, and copyrights**. * **Knowledge Transfer:** Acquiring proprietary **manufacturing processes** and **scientific assistance**. * **Commercialization:** Granting **exclusive/non-exclusive licenses** and trademarks for royalty-based considerations. * **R&D Investment:** Capital is deployed into **experimenting and testing** inventions to enhance their industrial and commercial value. --- ### **Financial Trajectory & Capital Allocation** The company has maintained consistent revenue growth, supported by robust demand in the Indian infrastructure sector. **Standalone Financial Summary:** | Particulars (₹ in Lacs) | FY 2024-25 | FY 2023-24 | FY 2022-23 | FY 2021-22 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenue** | **41,163.59** | **38,934.41** | **39,185.36** | **37,442.00** | | **EBITDA** | **2,908.59** | **2,379.37** | **2,295.82** | **-** | | **Profit After Tax** | **883.37** | **903.29** | **601.13** | **442.00** | | **EPS (INR)** | **-** | **3.01** | **2.00** | **1.47** | **Key Financial Notes:** * **Profitability:** While **EBITDA** grew significantly in **FY 2024-25**, **PAT** was impacted by one-time items, including a **write-off of MAT Credit Entitlement** and a **loss on the buy-back of shares** held as investments. * **Capital Raising:** To fund solar and steel expansions, the company increased its borrowing limits from ₹100 Crore to **₹600 Crore** in **Feb 2025**. * **Preferential Allotments:** Issued shares to promoters at **₹50–₹52/share** in **2025**, raising approximately **₹15 Crore** for the **36.25 MWp** solar project. * **Debt Financing:** Secured a **₹85.20 Crore** Rupee Term Loan from **IREDA** and additional facilities from **Union Bank of India**. --- ### **Risk Mitigation & Operational Standards** Vaswani Industries employs a rigorous framework to manage the inherent risks of the steel industry. **Market & Commodity Hedging:** * **Zero Foreign Exchange Risk:** The company operates **100% domestically**, with no exposure to imports or exports. * **Price Protection:** Uses **Futures, Options, and Swap contracts** for iron ore, coal, and scrap metal to hedge against price volatility. * **Supply Chain Synergy:** Engages in arm's length transactions with **Kwality Foundry Industries (KFI)** to ensure consistent supply. **Environmental & Regulatory Compliance:** The company is transitioning from traditional coal blast furnaces to **modern electric blast furnaces** to reduce emissions. Strict environmental protocols include: * Maintaining particulate emissions below **30 mg/Nm³**. * **24x7 continuous emission monitoring** linked to SPCB/CPCB servers. * Mandatory stack heights of **30-47 meters** for furnaces. --- ### **Governance & Compliance Status** The company has identified and is actively addressing several historical compliance gaps noted in recent audits: * **Board Composition:** Rectifying past lapses where the number of **Independent Directors** fell below statutory requirements. * **Financial Reporting:** Addressing previous failures to consolidate financial statements with associates like **C.G. Ispat Private Limited**. * **Disclosure Improvements:** Enhancing the timeliness of stock exchange intimations regarding KMP changes and board meetings, and improving statutory disclosures on the corporate website. * **Executive Remuneration:** Approval sought for minimum remuneration for MD **Mr. Yashwant Vaswani** (**₹1.80 Crore** annually) due to inadequate profits in the transition period.