‘Pay revisions, tech upgrade helped turn things around’
NEW DELHI: The Cement Corporation of India (CCI) was incorporated in 1965 with the aim to emerge as a leader in setting up plants in deficit/remote areas for removing the existing regional imbalances of production and consumption of cement. The present authorised share capital of the company is `900 crore. Its chairman and managing director RP Tak spoke to HT on a range of issues. Excerpts:
How has the company been able to turn around from a loss making company to a profit making one?
The company was making losses until 2005-2006 due to reasons such as obsolete technology, non- modernisation of plants, inadequate captive power, shortage of working capital and also the recessionary condition in the cement industry that lasted till 2004-05. On the sanction of a scheme in March 2006 by the board for industrial and financial reconstruction and by infusion of funds from the government and waiving of interest in certain cases the company was able to clear debts. The scheme also envisaged closure of seven non-operational units. The company has been earning profits consistently since 2006-07. To increase the company’s productivity, the company has taken measures like implementation of pay revisions, timely promotions and various welfare schemes such as post retirement medical benefits. The board for reconstruction of public sector enterprises (BRPSE) also conferred CCI with the prestigious Turnaround CPSE Awards 2010. Can you elaborate on the company’s expansion and diversification plans?
We presently have five brands of cement. Our plan is to further diversify our product by manufacturing railway sleepers, electric poles and ready mix concrete among others. We will explore setting up a joint venture for this purpose, besides technology upgradation of our plant in south India and expansion of the one in Assam. The company also has plans to set up new capacities of economic size, that is more than one million tonne per annum, at its operating units. We have also obtained ISO 9001–2008 certification at our all three operating units. We have produced railway sleeper cement and this is a replacement of steel and wooden railway sleepers.
You have recently signed an agreement with Numaligarh Refinery Ltd (NRL), Assam. Can you elaborate on the specifics?
A memorandum of understanding was signed between CCI and NRL in October last year to set up a 75-MW power plant by utilising high sulphur raw petroleum coke near CCI’s Bokajan Unit in Assam. The power generated shall be shared by NRL and CCI. This joint venture will help in improving the productivity of the Bokajan Plant by way of availability of power, fly ash and gypsum. Anyone with an interest in wildlife and birds should have had another reason to celebrate on the 14th of February. No, St Valentine was not a greenie. But the Mughal emperor Babar was, and Valentine’s Day was also his birthday.
Babar is known to have been a keen observer of the natural