| Captive power generation has increased from 182.05 million KWH last year to 280.56 million KWH during the year under review, thus meeting about 94% of the total power requirement of the Section. This has been possible due to the commissioning of third power plant of 17.5 MW capacity in April 2007. |
| There has been an all round increase in the cost of raw materials as well as coal during the year. Due to the non - availability of coal both in quantity and quality, the section had to import more expensive coal with additional burden on the cost of production. |
| As reported earlier, the Company has undertaken further expansion of Cement capacity by 1.65 million MT per annum and for this the civil work for Cement Plant as well as for Captive Thermal Power Plant are in advance stages of completion and supply of indigenous and imported machineries has started arriving. Erection of Plant and Machinery will commence shortly and the project is scheduled for commissioning in the first quarter of the calendar year 2009. |
| This Section has got various awards, including 1st prize from Mines Safety Association of Karnataka. |
| Industrial relations during the year were cordial and peaceful. |
| The Section has undertaken various social welfare activities such as construction of water tank at Sedam Town, tree plantation and water harvesting, health camps and vocational training centre, farmers' training and rural development, etc. |
| Kesoram Cement |
| Production figures of this section are as under : |
| (Qty in MT) |
| Production |
2007-08 |
2006-07 |
| Clinker |
10,47,210 |
8,85,950 |
| Cement |
11,99,445 |
10,56,742 |
|
| This Section has achieved the highest ever production of both Clinker and Cement, since its inception. With up - gradation and modification of kilns, supporting process units etc., the capacity of this section has increased to 12 lac MT per annum during the year and it is expected to go upto 16 lac MT per annum during second half of the year 2008 - 09. |
| Production of blended cement, under the brand name "BIRLA SHAKTI" has increased from 6.01 lac MT during 2006 - 07 to 9.36 lac MT during the year under review, a growth of about 56% in order to match corresponding demand, due to aggressive advertisement campaign. Further efforts are on to increase the Blended Cement production since adequate Fly Ash is available in nearby areas. BIRLA SHAKTI brand has rapidly built - up the customer base with growing market share in Andhra Pradesh and also in other markets. |
| This Section registered about 70% of its total sales in its home market, i.e. Andhra Pradesh. By selling within smaller radius, the Company was able to notch higher net realization, thanks to lower logistic cost. |
| There has been an all - round increase in the cost of raw materials and coal during the year under review. However, the same could be set - off since cement prices have improved due to improvement in demand for the material. Besides remunerative prices for Cement, the increase in Blended Cement production also helped. |
| Captive Thermal Power Plant generated 1153.02 lac Units of Power, which is the highest generation ever achieved. This includes 42.84 lac Units supplied to APTRANSCO. Captive Power Plant meets about 90% of the total power requirement of this Section. It also ensures continuous and consistent supply of Power at lower cost. |
