| RAYON & TRANSPARENT PAPER SECTIONS | ||||||||||||
| The year started with the VFY (Viscose Filament Yarn) demand displaying signs of weakening with the inventory built up. The weakness reversed during the 2nd Quarter due to increase in prices of other competing fibres. Also the VFY production cost in China increased due to limited availability of Cotton Linter Pulp and Rayon Grade Wood Pulp. Thus the cost of VFY imports also increased. This helped in improved sentiments for VFY in indigenous market leading to higher realisations & reduction in inventory level. The exports also increased substantially from 612 M.T to 895 M.T during the year. | ||||||||||||
| Production of T.P (Transparent Paper) was marginally higher due to improved demand from the 'Fireworks' industry which is the main consuming sector of this product. The exports were 332 M.T against 293 M.T of last year. | ||||||||||||
Chemical business was somehow satisfactory. Steep rise in the price of Sulphur, Power and Charcoal will now affect the cost of production severely. This will put pressure on realization which may result in slackness in demand. |
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| Owing to unprecedented increase in Pulp & Sulphur prices during the year under review, the operating margins of the Section suffered. Also due to global shortage of Cotton Linter Pulp, the price of Rayon Grade Wood Pulp is showing strong trend of increase which coupled with recent abnormal increase in coal price may affect the profit of the Section adversely during the coming year. The sale prices of VFY & T.P are almost at saturation level and further increase, if any, may spur substitution and subsequent fall in demand. | ||||||||||||
| The technical performance of the Unit was satisfactory and relations with the employees were cordial during the year. | ||||||||||||
| SPUN PIPES SECTION | ||||||||||||
| Factory is under Suspension of Work on and from 2nd May 2008 because of day–to-day low production, quality problems and high rejections attributable to workmen. Several Bipartite and Tripartite meetings were held during the year. But, due to continued hostile attitude and rigid stand taken by a Section of the workmen and their unions, the efforts made to reach a settlement were not successful. The blockade and barricade in front of the factory gate is still continuing. Finished goods and other material lying inside the factory could not be removed. | ||||||||||||
| HINDUSTHAN HEAVY CHEMICALS SECTION | ||||||||||||
| The production figures of the Section were as under : | ||||||||||||
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