| RAYON & TRANSPARENT PAPER SECTIONS |
| Amidst challenging environment, performance of VFY (Viscose Filament Yarn) business is satisfactory. Strong domestic demand and higher penetration in export market led to substantial growth in volumes, coupled with reduction in the cost of all the major raw materials - pulp and sulphur, the Section's operating margin improved in spite of the steep hike in coal & electricity costs. Margins in future, are likely to decline from current level due to upward trend in pulp and sulphur prices. Export demands are also likely to be impacted due to stiff competition from China and the imposition of Anti-dumping duty by the Government has not been of much help in arresting cheap imports in the country. The exports were 612 M.T. against 521 M.T. of previous year. |
| The T.P (Transparent Paper) business continues with unfavourable market environment resulting into poor realization mainly due to competition with cheaper imports & substitutes. As a result of the above, again the production capacity of this Section could not be fully utilized. The exports were 293 M.T. against 306 M.T. of previous year. The recent hike in the rate of Excise Duty will further impact the demand and profitability of this product. |
| The performance of Section's chemical business was satisfactory despite the prevailing global economic conditions and cheap imports. |
| Relations with the employees were cordial during the year. |
| |
| SPUN PIPES SECTION |
| The factory of this Section continues to be under suspension of work on and from 2nd May, 2008. The blockade and barricade in front of the factory gate is continuing, as a result finished goods and other material lying inside the factory could not be removed. All finished goods outside the factory have been sold. |
| During the year Rs. 4.53 crore were recovered against old outstanding while sale was of Rs. 0.35 crore only. |
| |
| HINDUSTHAN HEAVY CHEMICALS SECTION |
| The production figures of the Section were as under : |
| Production |
2009-10 |
2008-09 |
| Caustic Soda Lye |
11,663 MT |
11,737 MT |
| Sulphuric Acid |
19,061 MT |
19,139 MT |
| Hydrogen Gas |
7,53,453 M3 |
8,18,882 M3 |
|
