SAIL takes special cost optimisation initiatives to save Rs. 5000 crores during next three years

City Name: 
New Delhi
Release Date: 
Thu, 09/12/2013 - 13:43

New Delhi: The Indian steel companies are facing the dual challenge of high cost of production on one hand and lower sales realization on the other. The cost of production is being driven up by the volatility in the prices of coal, higher railway freight, power tariff, royalty on minerals, depreciation of the rupee, etc. while prices are flat due to prevailing market conditions leading to severe pressure on margins.

To address the above challenges, an apex Strategic Confluence on Cost Control and Cost Competitiveness was organized by SAIL at its Management Training Institute, Ranchi during September 11-12, 2013. Shri C.S.Verma, Chairman, SAIL, all the Functional Directors, Chief Executive Officers of the Integrated Steel Plants and other top officials attended the Confluence.

During the Confluence a special initiative named COIS (Cost Optimization Initiatives of SAIL) was launched outlining the road map for achieving an overall saving target of around Rs 5000 crores during the next three years.

Under this special initiative, following thrust areas have been identified for continual cost reduction:


  • Input optimisation
  • Improving the operational efficiency by optimally utilising the available assets
  • Quick stabilization of the newly commissioned units
  • Reducing overhead costs and enhancing employee productivity


For each of the areas the integrated steel plants and units have identified potential cost drivers and elaborated their strategy for cost optimisation.

During the deliberations, Shri C.S. Verma, Chairman, SAIL highlighted the challenges before the organisation due to prevailing market conditions and intense competition. He urged the participants to think out of the box and walk the extra mile to enhance competitiveness of the company. He advised the senior officials to lead from the front for achieving the Company’s goals.

Photo captions:

SAIL Chairman Mr CS Verma at the Strategic Confluence on Cost Control and Cost Competitiveness held at MTI, Ranchi held on September 11-12.

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