The Hindu : Bhilai Steel Plant on a roll

Online edition of India's National Newspaper
Saturday, Oct 04, 2003

Business

Business

Bhilai Steel Plant on a roll

By N. N. Sachitanand

BANGALORE OCT. 3. Outdoing its own outstanding performance in H2 of the last fiscal that aided SAIL's star performer to finish the year with net profits of Rs. 750 crores, Bhilai Steel Plant has concluded the first half of 2003-04 with a growth of 8.1, 5.6 and 6.1 per cent, respectively in hot metal, crude steel and salable steel production over H2 of 2002-03. The 2003-04 H1 cumulative hot metal, crude steel and salable steel production at 2.48 million tonnes, 2.33 mt and 2.015 mt were also 18, 15.2 and 17.3 per cent higher than corresponding volumes in 2002-03. While total salable steel has surpassed the previous best of 1.792 MT in H1 of 1996-97, hot metal production surpassed the previous best of 2.269 MT in 1997-98. In H1, total crude steel production also surpassed the previous best of 2.091 mt in 1996-97.

Exports too have grown handsomely. Having loaded 1.14 lakh T billets for export in H1 including 30,162 T in September 2003 itself, the plant has registered a growth of 120 per cent. Plate despatches and wire rods despatches for export too have grown by 53 per cent and 22 per cent, respectively.

Going by the current performance trend, both in terms of volumes and sales, Bhilai Steel Plant's profit earning in the first six months is projected to surpass its 2002-03 total net profit of Rs. 735 crores. The Managing Director, B. K. Singh, when contacted declined to comment on the financial performance, but gave full credit to Bhilai collective for grabbing market opportunities. The highly motivated employees of the Chhattisgarh based plant led by its inspirational Head of Works, S. B. Singh, have responded resoundingly to the call made by the MD to outdo the plant's past performance. The plant achieved its highest net profit of Rs. 819 crores in 1995-96. If the quarter-to-quarter growth in Q2 over Q1 in the current fiscal is any indication, the plant is headed for making history with its financial performance in 2003-04. Sources indicate that the growth achieved in areas of production, asset utilisation, techno-economic parameters, value-added products and exports should continue to pay rich dividends with the best months of the fiscal still ahead.

Internal targets are being revised in tune with the buoyant market situation so as not just to meet demand but to increase Bhilai's market share. While the hot metal, crude steel and salable steel production targets for the year that had been pegged at 5 mt, 4.45 mt and 4 mt, respectively, have been revised to 5.735 mt, 4.767 mt and 4.120 mt, respectively, the sole producer of rails in the country is committed to supply 7.20 lakh tonnes rails to the Indian Railways in the current fiscal. The plant's Plate Mill that manufactures high-tensile and boiler quality grades besides special steel for use in naval vessels and line-pipe applications, too is targetting one million tonne production this fiscal. Making the most of the rise in global steel prices, Bhilai is exporting plates, wire rods, billets and more recently, TMT bars.

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