Kirloskar Ferrous Industries Limited, a leading manufacturer of pig iron and ferrous casting products, has reached a significant milestone with the completion of its third oxygen plant at its facility in Koppal, located in the southern Indian state of Karnataka. This development, confirmed by the company on November 20, marks an important step in improving the production process at KFIL's mill and aligns with the company’s commitment to enhancing operational efficiency and reducing costs.
The newly installed oxygen plant will primarily serve to enrich the hot blast in the mini blast furnaces. By introducing more oxygen into the blast, the company aims to optimize combustion, improving the overall efficiency of the furnace operations. The enriched hot blast is expected to facilitate more complete burning of fuel and a more controlled and efficient production process. This shift is expected to reduce the amount of coke consumed, which is a crucial step toward lowering manufacturing costs.
One of the most important benefits of this development is the anticipated increase in the use of pulverized coal injection. PCI is a method in which finely ground coal is injected directly into the blast furnace, replacing some of the coke traditionally used. The introduction of additional oxygen will allow KFIL to inject higher amounts of coal into the furnace, resulting in reduced coke usage. The overall impact will be a more cost-effective and sustainable manufacturing process, in line with the company's goals to reduce reliance on more expensive and environmentally taxing materials.
The investment in this third oxygen plant was substantial, with the company allocating approximately INR 370 million, equivalent to about $4.40 million. This amount was funded through a combination of internal accruals and bank borrowings, demonstrating KFIL's strong financial management and ability to invest in long-term growth. The decision to finance the project in this way highlights the company’s focus on enhancing its infrastructure without compromising its financial stability.
The oxygen plant's commissioning is not only a technical achievement but also a reflection of KFIL’s strategic vision for the future. By optimizing key aspects of the production process, such as the hot blast in the blast furnaces, the company aims to improve product quality while reducing costs. The enhanced efficiency brought by the oxygen plant is expected to provide KFIL with a competitive edge in the highly competitive iron and steel manufacturing sector.
Additionally, the installation of the new plant further underscores KFIL’s commitment to environmental sustainability. By reducing coke consumption and increasing the use of pulverized coal, the company is taking steps toward a cleaner and more eco-friendly production process. This aligns with growing global and domestic demands for more sustainable industrial practices in the heavy manufacturing sector.
The commissioning of this oxygen plant also enhances KFIL’s ability to meet growing market demands. As the company expands its production capabilities, it positions itself to increase its supply of pig iron and ferrous casting products, which are in high demand across various industries such as automotive, construction, and engineering. With enhanced operational efficiency, KFIL will be better positioned to respond to these market needs while maintaining profitability.
