Financial Daily from THE HINDU group of publications
Wednesday, Apr 27, 2005

Port Info

Group Sites

Industry & Economy - PSU

Salem Steel Plant aims at 40 pc increase in production

Our Bureau

Salem , April 26

THE public sector Salem Steel Plant (SSP) plans to raise its production by 40 per cent to 2.11 lakh tonnes for 2005-06 fiscal from the 1.50 lakh tonnes during 2004-05.

The plant is also eyeing the special finishes fabrication and kitchenware segments in the domestic market, which, together with SSP's brand equity, had last year given greater momentum to its product sale.

The plant had closed the 2004-05 fiscal with a turnover of about Rs 1,000 crore, a rise of 79 per cent from the previous year's Rs 557 crore. The increased sale had enabled SSP make a net profit of Rs 2.70 crore up to December 2004 and the unit's full fiscal 2004-05 would keep this profit ratio as the fourth quarter financials are still under computation, according to Mr M. Roy, Executive Director of SSP.

Talking to presspersons, Mr Roy said the plant could sustain the profitability, despite certain setbacks such as drastic reduction in hire rolling capacity, idling coin blanking unit and low volume exports in initial months due to suspension of DEPB benefits. The increased turnover and profitability were made possible by a marketing drive to raise domestic sales, higher value addition to its product range such as more thinner products for exports and greater control over costs.

The plant's total steel products sale last fiscal was 1.48 lakh tonnes, which included 48,000 tonnes of carbon steel. This was higher by 80 per cent over the previous year's sale of 82,200 tonnes. Its exports and domestic sales, too, were higher at 67,000 tonnes and 27,000 tonnes, respectively. For 2005-06, the plant has targeted exports of 91,000 tonnes and achieving a domestic sale of 30,000 tonnes.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Project for youth in AP

The great growth story
Hiccups, yet Mumbai marches on!
Starting up a brand new day
City of Hope
Why financial planning?
ESCAP pegs India's GDP growth rate at 7.5 pc
Plan panel to prepare discussion paper on regulatory regime
Shipping Ministry urged to carry out studies for Sethusamudram project
Saving the turtle
`Time to come out with FDI-based ties with Japan'
Aiyar to visit Pak next month
AP raises ESI limit on super-speciality treatment to Rs 1 lakh
Nursing Council directive
USAID to help develop pool finance structure in Bengal
Govt to build 42 flyovers in Mumbai
Salem Steel Plant aims at 40 pc increase in production
`Viability is key to investment in melting shop'
Left parties urge Govt not to raise petro prices
Development, expansion of Tapti gas field: British Gas-ONGC-Reliance joint venture plans to invest $500 m
Power Tariff Policy to be finalised soon
Orissa not to allow setting up of new sponge iron units
Some mass consumption items exempted from VAT — Consensus reached on convergence of rates
VAT: Promos on consumers' rights soon
`Trade response to VAT disappointing'
Commonwealth SME meet — enterprising
Nickelodeon in tie-up with Bombay Dyeing
Western Australia keen on biotech alliances
`East can attract $125 b investment in minerals'
Resurgent India
`Investment boom will follow Japanese PM's visit'
CII-APTDC workshop
Guatemala takes flavour off cardamom exports
EU to launch probe into sharp surge in Chinese textile imports
IOC to step up crude import from Iraq
Services Export Promotion Council gets off the ground — L.B. Singhal is Executive Director
Global demand for eco-lodges expected to rise by 10 pc
Airport officials taught to be tourist-friendly

The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2005, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line