Sponge iron is formed through the reduction of iron ore to metallic iron through reaction with carbon in the form of coal, etc at approx 1100 degree Celsius. Sponge iron is also referred to as direct reduced iron, metalized iron, or hot briquetted iron.

Sponge iron is used in the iron and steel industry as a substitute for scrap in induction and electrical arc furnaces. Over the years, the shortage of expensive melting scrap has made sponge iron a significant raw material for manufacturing high quality steel. In India, the abundance of Iron Ore deposits has led to absorption of the renowned by the Indian industry and use of ore lumps and fines has led to the country becoming the largest producer of sponge iron in the world.

Monnet Group ventured into this segment in early nineties and over the years has perfected the technology and become the second largest sponge iron manufacturer in India.

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