Welcome to Lanco Industries Limited

Lanco Industries Limited (LIL) was incorporated on 1 st November, 1991 by Lanco Group of Companies to manufacture Pig Iron using Korf (German) technology and Cement. The unit is located at Rachagunneri Village on Tirupathi - /Srikalahasthi road which is about 30 kms. from Tirupathi and 10 kms. from Srikalahasthi. The installed capacity of Pig Iron was 90,000 TPA and with similar capacity 90,000 TPA for cement.

Due to the poor demand and other reasons, the operations of the cement unit of the Company was suspended and the unit was reengineered for producing a different product mix having potential in south India.

As a measure of forward integration project for adding value to the Pig Iron manufactured by the Company, LIL floated an another company named Lanco Kalahasthi Castings Limited (LKCL) on 4 th March 1997 to manufacture iron castings and spun pipes in the same campus of the Company with an annual capacity of 40,000 TPA and 35,700 TPA respectively. Accordingly, LIL had an arrangement with LKCL for supply of molten iron and Pig Iron to LKCL, being a value added product, as such iron pipes manufactured by LKCL offered better returns.

However, due to falling Pig Iron prices, increase additional capacity in the industry, competition and the technical & financial assistance, the operations of both LIL and LKCL were effected and the Company was exploring financial and technical strategic alliance with Indian / Foreign Partner.

During the same time M/s. Electrosteel Castings Limited, was also looking for additional capacities for producing spun pipes. Considering the synergies involved, Lanco Industries Limited entered into a strategic alliance partnership during December 2002, with M/s. Electrosteel Castings Limited (ECL), Kolkatta a leading manufacturer of CI, Pipes and DI pipes. This was win-win situation for both LIL and ECL. After takeover, a financial re-engineering and re-structuring of LIL was undertaken by ECL by implementing the following: -

Immediately after take over an amount of Rs.2200 lakhs was infused as share capital of the Company by M/s.ECL to strengthen the equity base of the company.

During 2002, the capacity of Pig Iron was increased from 90,000 TPA to 150,000 TPA.

With effect from 1 st April, 2003 LKCL was merged with the company to take advantage of the close synergy in the business of the two companies, since a large part of Molten Iron / Pig Iron is consumed by LKCL for manufacture of DI Pipes.

After the merger, the share capital of LIL, the paid up share value of Rs.10/- was reduced to Rs.2.50 per share and accordingly one share of Rs.10/- each fully paid up in LIL was issued to all the existing shareholders for every 4 shares held by them.

During 2003, the capacity of the DI pipes was increased to 90,000 TPA.

During 2004, the company took the step of backward integration by setting up 150,000 TPA coke oven plant in the same complex, which was commissioned in June 2005.

During 2005, the company started setting up of a Captive Power Plant of 12 MW by using the waste heat recovered from the coke oven plant which is expected to be commissioned by March 2006.

An additional amount of Rs.25 crores is being spent on other capital works like revamping of bitumen coating machine, balancing equipment and facilities for production of higher diameter DI pipes etc. to increase the capacity of DI pipes from the present 90,000 TPA to 120,000 TPA by 2006-07.

The above has resulted in the company witnessing a profitable years after a gap of 8 years during the years ended 31 st March, 2003, 2004 and 2005 and a dividend of 10% was declared for the years ended 31 st March 2004 and 2005 to the shareholders.

  Step by Step Company's Growth

Incorporation of Lanco

Setting up of Mini Blast Furnace with 90,000 TPA capacity
Setting up a 250 TPD Mini Cement Plant
Setting up of LKCL for manufacture of 40,000 TPA castings and 35,700 TPA D I Pipes
Strategic Alliance with Electrosteel Casting Limited
Infusion of Rs.2200 lakhs to the equity and financial restructuring
Merger of LKCL with LIL for synergy
Capacity of Pig Iron was increased to 90,000 TPA to 150000 TPA.
Capacity of DI Pipes was increased to 90,000 TPA.
Commissioning of 150,000 TPA coke oven plant.
Setting up of Captive Power Plant of 12 MW by using the waste heat recovered from the coke oven plant.


Capacity of D.I.Pipes was further increased from 90,000 TPA to 1,20,000 TPA and the 12 MW Waste Heat Recovery Based Co-Generating Captive Power Plant was set up, which started generating power from March, 2007.



Stamp Charging System was successfully implemented at Coke Oven Plant for producing quality metallurgical coke at a lower cost.


Company implemented ERP system (SAP) to support business process and effective resource planning and management.



Capacity of D.I. Pipes was increased from 1,20,000 TPA to 1,80,000 TPA



Capacity of Mini Blast Furnace (MBF) for production of Liquid Metal/Pig Iron was enhanced from 150,000 TPA to 225,000 TPA and also the capacity of DI Pipes was enhanced from 180,000 TPA to 225,000 TPA with a capital outlay of about Rs.45 Crores.

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