SAIL Chairman: We are fully geared to cater to increased steel demand

City Name: 
New Delhi
Release Date: 
Wed, 09/24/2014 - 09:47

Expected to go up on back of huge infra projects

Total sales volume in 2013-14 grows 8.6%, Profits up 21%

New Delhi: “We are fully geared up to cater to the increased steel demand in a cost effective manner by way of adoption of modern technology, automation, improvement in product quality, enriched product basket and process efficiency,” said Chairman of Steel Authority of India Limited (SAIL) outlining the company’s strategy for growth at the company’s 42nd Annual General Meeting held here today. He expressed optimism that Government’s focus on accelerating growth in manufacturing and infrastructure through development of smart cities, ports, power plants, development of industrial corridors and revival of Special Economic Zones (SEZ) would boost the steel demand substantially, results of which will be seen in the near future itself. Elaborating on the company’s vision for future he said, “SAIL is finalizing its Vision 2025 document, which will steer the company to increase its production capacity of Hot Metal to 50 million tonnes, along with related/enabling business activities.” Implementing the Vision 2025 would entail an investment of about Rs. 1,50,000 crore in addition to the investment made in the current phase of expansion.

During his address to shareholders Chairman, SAIL mentioned that the Maharatna company had achieved a 21% increase in Profit After Tax, logging profits of Rs.2,616 crore during 2013-14. For the financial year 2013-14, the company paid dividend at the rate of 20.20% of paid up equity share capital. He further informed that SAIL achieved the highest ever turnover of Rs.51,866 crore during 2013-14, registering a growth of 5%. The company further attained a total sales volume of 12.09 million tonnes in 2013-14 with a growth of 8.6% over last year. The Company’s debt equity ratio was amongst the lowest in the Indian Steel Industry at 0.59:1 as on 31st March, 2014.

SAIL has been making an average expenditure of more than 10,000 crore each year for the past 5 years and it plans to make a capital expenditure of Rs. 9,000 crore on Modernization and Expansion during the financial year 2014-15 as well. Chairman informed that facilities of about Rs.26,000 crore have already been operationalised and further explained that cumulatively, orders for Rs.62,778 crore have been placed under the current Modernisation & Expansion Plan of SAIL. The expenditure till August, 2014 has been more than Rs. 55,000 crores.

Elaborating on the progress made in the Modernization and Expansion Programme, Chairman said, “From May 2014, the entire integrated process route at Rourkela Steel Plant comprising new Ore Bedding & Blending Plant, Sinter Plant, Coke Oven Battery No.6, Blast Furnace No. 5 - the largest operating blast furnace in the country, the 3rd BOF, new Slab Caster and Plate Rolling facility in the new 1 mtpa Plate Mill have become operational.” He was also upbeat that after the start up of the First Basic Oxygen Furnace (BOF) at IISCO Steel Plant (ISP) on 8th September, production from the new 4060 m3 Blast Furnace is expected to start by the next month.

AGM_2014

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