The Rs 4 billion phase-I expansion of Balasore Alloys Limited (BAL), part of the Ispat group of companies, may be delayed by a year due to delayed financial closure for the plan. Though the company intended to complete phase-I by the end of 2009, it is most likely to be completed by the end of 2010, says BAL Managing Director R K Jena.
The global recession has made the banks cautious while lending. However, the company has appointed SBI Capital as its consultant and hopes to achieve financial closure in the next six months.
While the slowdown impacted the ferro chrome units across the country, BAL has maintained its operations at 100 per cent capacity. Though the firm’s bottom line has been affected with a third quarter loss of Rs 300 million, it has recorded a cumulative profit of Rs 270 million in the first nine months of the current financial year.
Despite incurring a loss due to a 60 per cent decline in the international price of ferrochrome and only 20 per cent decline in the raw material price, the company has not laid off any staff. It has about 700 permanent and 400-500 temporary workers. “We are focussing on maintaining the production, while keeping the employees’ morale high,” Jena added.
Exports have not been affected much, Jena said. European, North American and southeast Asian markets are the major revenue generators for BAL. It achieved a turnover of Rs 4.5 billion in FY08 and has targetted to raise it to Rs 6 billion by the end of March 2009. It has already achieved a turnover of Rs 5.3 billion.
Source: Business Standard
Showing posts with label balasore. Show all posts
Showing posts with label balasore. Show all posts
Wednesday, February 4, 2009
Tuesday, January 13, 2009
Balasore Alloys Committed To Expansion Plans
Mr Rabindra Jena, MD of Balasore Alloys, one of India's leading ferroalloys manufacturing companies, has said that his company will eventually go ahead with its expansion plans, though he suggested that those plans may meet with a delay.
Mr Jena said “Neither we would resort to retrenchment nor shall we reduce our production despite adverse situation. Further, we would move ahead with our expansion project. However, there could be a delay of nearly 12 to 14 months." He said that this delay would be "owing to financial constraint since bankers are maintaining very conservative and cautious approach advancing loans.”
He pointed out that “While we engage nearly 3,000 people directly, about 1,000 trucks are engaged on a rotation basis at the mines. Hence any decision would prominently affect the livelihood of the dependent of the engaged.”
Under the expansion plan, the company will be undertaking the installation of a furnace and power plant of 200 MW, as well as linking the rail line to the plant site from Balasore station.
Mr Jena claimed that the current crisis is worse than that of the 30s, and added that keeping the plant running in such a tumultuous period is one of the biggest challenges for any management. "We have disbursed bonus of 20 per cent for every one aggregating to the tune of nearly INR 1.6 crore even in the deep crisis period during Durga Puja."
He said that “In industry, you can not always expect profit. If you are filled with thoughts of profit, then you are no longer an industrialist but a mere trader.” He asserted that Balasore Alloys would keep its commitment towards the local community and peripheral development despite the adverse situation, which is likely to prevail till last quarter of the calendar year.
Mr Jena said “Neither we would resort to retrenchment nor shall we reduce our production despite adverse situation. Further, we would move ahead with our expansion project. However, there could be a delay of nearly 12 to 14 months." He said that this delay would be "owing to financial constraint since bankers are maintaining very conservative and cautious approach advancing loans.”
He pointed out that “While we engage nearly 3,000 people directly, about 1,000 trucks are engaged on a rotation basis at the mines. Hence any decision would prominently affect the livelihood of the dependent of the engaged.”
Under the expansion plan, the company will be undertaking the installation of a furnace and power plant of 200 MW, as well as linking the rail line to the plant site from Balasore station.
Mr Jena claimed that the current crisis is worse than that of the 30s, and added that keeping the plant running in such a tumultuous period is one of the biggest challenges for any management. "We have disbursed bonus of 20 per cent for every one aggregating to the tune of nearly INR 1.6 crore even in the deep crisis period during Durga Puja."
He said that “In industry, you can not always expect profit. If you are filled with thoughts of profit, then you are no longer an industrialist but a mere trader.” He asserted that Balasore Alloys would keep its commitment towards the local community and peripheral development despite the adverse situation, which is likely to prevail till last quarter of the calendar year.
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