Nelcast Ltd Share Price

History of Nelcast Ltd

Nelcast Limited was incorporated on 7 June, 1982 as 'Nelcast Private Limited' at Nellore, Andhra Pradesh. Subsequently, Company was converted into a Public Limited Company and the name was changed to Nelcast Limited on 20 September 1995. Mr P. Radhakrishnan Reddy promoted the Company. Nelcast is a leading producer of ductile & grey iron castings in India. Besides a strong position in domestic market, the Company has a rapidly growing presence spread across North America, Europe and Southeast Asia. It has total installed production capacity of 160,000 Metric tonnes per annum. Its factories are located at Ponneri in Tamil Nadu, and at Gudur and Pedapariya in Andhra Pradesh. Presently, it is engaged in manufacture of Iron Castings in Automobile sector such as engine, transmission, suspens ...ion, axle, brake, steering, housings etc., farm equipment industry, railways and pipe fitting industries. It serves as a strategic supplier and partner of first choice to TAFE, Tata Motors, DANA, Ashok Leyland, Automotive Axles Limited, Meritor and American Axles & Manufacturing, among others. The Company is a one-stop shop for its customers for Grey Iron, Ductile Iron and Austempered Ductile Iron ranging from 0.5 kg to 400 kg. Nelcast's manufacturing plants are in close proximity to Chennai, which is a major manufacturing hub for automotive companies. Chennai forms both a key customer base for Nelcast and a reliable source of steel scrap, a crucial raw material for the Company. All 3 plants are within 15-110 km of India's largest source of Silica Sand near Gudur. Moreover, Chennai's International airport with direct flights to Europe, MiddleEast & Southeast/East Asia make it convenient for customers to visit and see the Company's world class facilities first hand. The location enhances Company's export business given it is close to Krishnapatnam & Chennai seaports that gives easy access to reach its customers around the world. The first unit set up in Gudur, Andhra Pradesh, with an installed capacity of 1200 MT per annum for manufacturing ductile iron parts, commenced commercial production in the year 1985, to serve as an ancillary unit to meet the requirements of Ashok Leyland Ltd. Subsequently, The company has started to cater the requirements of farm equipment manufacturers and other heavy commercial vehicle manufacturers like Tata Motors, Mahindra & Mahindra, Tata Cummins, Tafe, to name a few. In less than a decade, the unit was received ISO 9002-1994 / EN ISO 9002-1994 Quality certification by the Indian Register Quality Systems. In the year 1996, a new manufacturing unit was established in Ponneri, Tamil Nadu with an installed capacity of 12,000 MT per annum, for manufacture of Grey Iron and Ductile Iron parts, wherein the state-of-the-art machine shop, consisting of CNC and special purpose machines, and the Kunkel Wagner Moulding line were installed. Both the units have a distinct locational advantage of having proximity to the Chennai Port and also being well connected by both the railways and roadways. In the year 2003 a subsidiary Nelcast USA Inc. was incorporated for managing the marketing, customer care service and coordinating with the overseas clients of Nelcast, particularly those located in the US. In the year 2006, the company current manufacturing capacity of both the manufacturing units stands at 72,000 MT per annum, geared to reach 1,02,000 MT per annum by the end of the current financial year. Apart from servicing the domestic requirement, the Company is also exporting to USA, Europe and Australia. During financial year 2007-08, the Company made an Initial Public Offer of 43,50,000 equity shares through 100% Book Building Process which opened on 4th June 2007 and closed on 8th June 2007. The shares were allotted on June 21, 2007 and got listed on June 27, 2007 on Bombay Stock Exchange Limited and National Stock Exchange of India Limited. As a result of the Public Issue, the net worth of the Company substantially increased. The Company disposed off its shares held in the subsidiary Company, Nelcast USA Inc in 2011-12 and hence, Nelcast USA Inc was no more a subsidiary. NC Energy Ltd. was made a subsidiary company in 2012-13.