The Company's pig iron business is operated by its erstwhile subsidiary, Sesa Industries Limited (SIL), which has been merged with Sesa Goa Limited and now known as the Pig Iron Division (PID). Having commenced its operations in 1992, the PID was the first to introduce low phosphorous foundry grade pig iron in India.

Today, the PID produces several grades of pig iron, including basic, foundry and spheroidal (nodular) grades that cater to steel mills and foundries in India and abroad. PID also produces slag as a byproduct which is sold to the cement industries.

The demand for pig iron fluctuated throughout the year. Overall, production reduced by 1% from 280,130 MT in 2009-10 to 276,117 MT in 2010-11. However, market prices improved and the PID managed better sales realisation in 2010-11.

The key data are given below.

• Sales volumes decreased by 5% from 278,747 MT in 2009-10 to 266,090 MT in 2010-11.
• However, external sales revenues increased by 22% from Rs. 552 crore in 2009-10 to Rs. 674 crore in 2010-11.
• Profits before interest, tax, dividends and other nonrecurring or non-allocable incomes for the pig iron business increased by 21% from Rs. 117 crore in 2009-10 to Rs. 141 crore in 2010-11.

The PID's facility, located in the village of Amona, Bicholim taluka, North Goa, consists of two blast furnaces each having a working volume of 173 cubic metres, with a combined annual rated capacity of 250,000 MT of pig iron, with a consent capacity of 292,000 MT. The plant adheres to the best standards of quality, environment, health and safety. It is certified to ISO 9001, ISO 14001 and OHSAS 18001 systems for quality, environment and safety respectively, through a third party certification agency, Bureau Veritas Certification (India) Pvt. Ltd., formerly known as BVQI. The PID's R&D activities have resulted in reduction in operating costs, improvement of product quality and development of new products for downstream industries. It has developed special grades of pig iron to cater to the fast growing niche market of ductile iron castings in India.

The Company's expansion project is progressing well after which the rated capacity of the pig iron plant will increase from 0.25 million tonnes per annum (MTPA) to 0.625 MTPA, along with expansion of the metallurgical coke plant, a new sinter plant and a 30 MW power plant based on waste heat recovery. Commissioning is expected in Q3, 2011-12.