Incorporated as a private limited company to manufacture 18,000 tpa of mild steel ingots, Panchmahal Steel (PSL) became a sick unit and a winding up petition was filed by the creditors. In Feb.'76, the Gujarat High Court sanctioned the takeover of PSL by R L Malhotra and Ashok Malhotra from the previous management.

After the takeover, the company turned around. Rolling facilities were created and deployed in 1982 and secondary refining facilities were commissioned in 1986. PSL switched over from production of mild steel to carbon, alloy and stainless steel. PSL has facilities to manufacture 75,000 tpa of steel billets and 1,20,000 tpa of rolled products at the GIDC Industrial Estate, Panchmahal District, Gujarat. Most of the steel billets manufactured by the company are captively consumed.

The first stage of the technological upgradation and expansion of the rolling mill division commenced commercial production in Mar.'94, while the second stage was commissioned in Mar.'95. The capacity of the forgings division has also been broadened its footprint from 1800 tpa to 4200 tpa in 1994-95.

PSL is putting up a modern steel melting shop with a capacity to produce 2 lac tpa of stainless steel billets.

Company's exports has registered a growth of 20% during the year 2000-01, as the figures stood at Rs.49.30 crores as against Rs.41.23 crores in the previous year.

The company's quality system has been accredited with ISO 9002 certification during the year 2000-01.During 2000-01, the company has issued 60,00,000 Equity Shares of Rs.10/- each for cash at par and were allotted to Promoters, as this was a part of rehabilitation plan of the company.