The demand for Transparent Paper (TP) was under stress throughout the year due to cheaper substitutes and unregulated imports. Also, the fireworks industry which is the main consumer of TP is facing severe production cut. This resulted in further reduction of demand. All these combined factors compelled the section to restrict the production during the second half of the year under review. The exports were 357 MT against 294 MT last year.
Production of all classes of goods manufactured by the Section, which during the first quarter of 2006 - 07 was affected due to suspension of manufacturing operations, was satisfactory during the year under review except for transparent paper for the reasons mentioned above.
The unprecedented escalation in international price of sulphur, which is the main raw material, from US $ 84 to US $585 a ton increased the cost of production substantially. Further increases in dearness allowance, coal and pulp prices also affected the profitability of the section. However, the technical performance remained satisfactory.
The market demand of various chemicals produced by the section was satisfactory.
Relations with employees were cordial.
SPUN PIPES SECTION
The Section had the improved inventory management and inspite of this, Section's bottom line remains in the red. The Section is under suspension of work since 2nd May, 2008.
HINDUSTHAN HEAVY CHEMICALS SECTION
The production figures of the Section were as under :
| Production |
2007-08 |
2006-07 |
| Caustic Soda Lye |
12,064 MT |
11,991 MT |
| Sulphuric Acid |
17,640 MT |
17,555 MT |
| Alum |
1,477 MT |
1,878 MT |
| Hydrogen Gas (Purified) |
5,78,774 m3 |
7,00,497 m3 |
Demand for Caustic soda was moderate throughout the year. However, the demand for joint products remained stable throughout the year.
In order to ensure better quality, the Section continues to enjoy the certification for Quality Management system by DNV Certification Agency as per ISO 9001:2000 and also for ensuring better environment management, the Company has renewed DNV Certification in respect of Environment Management System as per ISO 14001:2004.
The Section has taken various measures on its own along with Factory Directorate, West Bengal Pollution Control Board to increase the awareness and importance of Environment and Pollution Control. The Company has organized various awareness programmes through Safety Slogan Contest, observation of Safety Week & giving of awards to ensure health and safety of workmen.
EXCISE DUTY
During the year under review a sum of Rs. 452.40 Crores (Rs. 307.49 Crores in 2006 - 07) was paid on account of Excise Duty on various products manufactured by your Company.
