| GENERAL REVIEW |
| The increase in capacities to both Cement & Tyres Sections, good realizations for Cement Sections, continued cost control measures
and smart treasury management have resulted in current results in a year of high volatility and economic slowdown in spite of increase
in input cost and interest cost : |
| » Higher capacities and improved realization of Cement Sections have resulted in good contribution to the profitability of the Company. |
| » Increased capacities with fiscal benefits in Greenfield Projects helped the Tyre Section to contribute to the annual profit in a period of slowdown in the auto sector. |
| » Due to continued global economic downturn and high cost of production, the Rayon Section could make marginal contribution
only. |
| » Work at the Spun Pipes Section continues to be under suspension. |
| » Working of the Hindusthan Heavy Chemicals Section has not been satisfactory despite operational efficiency. |
| CEMENT SECTIONS |
| Vasavadatta Cement |
| Performance of this Section continues to be encouraging and it has achieved highest ever production of Clinker as well as Cement
during the year under review. Increase in production is due to higher capacity utilization of all the three units and upgradation of Unit-III has contributed to the improved performance. |
| Production figures of the section are as under : |
| (Qty in M.T.) |
| Production |
2008 - 09 |
2007 - 08 |
| Clinker |
34,41,496 |
31,11,506 |
| Cement |
39,24,589 |
32,78,309 |
|
| High product quality, strong brand image and continued customer loyalty have enabled this Section to achieve commendable performance in a year of high volatility, slowdown in the construction sector and an unprecedented liquidity crunch in the economy. Production of blended cement "Birla Shakti" has risen by over 11% from 16.02 lac M.T. to 17.81 lac M.T. |
| As reported in the previous year, the Section had undertaken expansion of cement capacity by 1.65 million tons per annum by putting
up Unit-IV, the cement production at the same is expected to start by June 2009. |
