25-08-2012, 01:07 PM
Safety and Welfare Measures Provided to the Employees of LANCO INDUSTRIES.
employee-welfare-and-measures.doc (Size: 439 KB / Downloads: 42)
INDUSTRY PROFILE
ABOUT THE INDUSTRY
India in 1994 has become the 4th largest producer of cement in the world .This impressive record owes its origin to the progressive policies of the government since late 70’s and enabled on assured 12% post tax return on Net worth (77).The economic reforms of July ’91 gave a further fillip by abolishing the licensing system for setting up cement plants. Since then innumerable technological development took place in cement production enabling cost reduction and mass production. The wet kilns of the late 70’s were replaced by dry kilns which reduced the fuel cost by 30% thermal efficiency was improved by installing pre-heaters, followed by the addition of pre-ealcinators. Optimal usage of fuel and power we achieved through computerization and quality control of raw materials.
India’s Stand in the world
India is the 4th largest cement producer worldwide, following china, Japan and U.S.A. India’s percaptia consumption is only 78Kg as compared to the world average of 251 Kg by the turn of the century. India’s capacity is expected to crores 100 million tones. The Industry has 59 companies owning 115 plants. In the matter of exports, the Government considers cement as an extreme focus area.
However, Industry experts comment that exports are mainly for keeping a check on the domestic prices, which get adversely affected due to exam production. In the global market. India cement is not very competitive due to high power and fuel costs. In order to improve its position in the International market, technological up gradation is essential in terms of process, product diversification, cost reduction quality control and energy savings.
CEMENT INDUSTRY HIGHLIGHTS
The Indian cement industry has high Return on Investment. There exists a large markers which are not yet been completely tapped. With the existing levels of supply and growing demand the prices tend to rise. But the industry being a fast growing one, many players are attracted. Every year new capacities are added raising the supply, price stability is thus maintained and the high profits are observed by new entrants.
The per capital consumption of manufacture commodities like steel, power and cement ate indicators of the economic state of a country. Of the total output nearly 95% is accounted for only 90%, while the Government sector accounts for 10%. The housing activity accounts for 55% of total consumption. Nearly 47% of the total costs, most of which are administrated prices are beyond the control of cement units. The cost elements include limestone, coal, transport freight, power consumption and excise duty.
Production and Consumption Pattern of Cement
In the case of cement production regional imbalances continue. Cement plants are generally put up where limestone id available. This because, to produce 1 tons of cement 1 ½ tones of limestone is required. Also it is easier to transport cement than limestone.
Cement is mainly produced in the Western and Southern regions. Hence, only half of the cement produced is consumed within the region. Cement is usually transported from south to west is the most surplus region. Although, west is a surplus regions, cement is transported from southern regions which are close to the consumption and excise duty. The destination of cement transport is mainly dependent on mode of transport available and the transportation cost incurred.
CEMENT MANUFACTURING PROCESS
In wet process, limestone is crushed and grounded and mixed with water to form slurry which is fed in to the kiln. The slurry has a water content of 30-40%. Before the mineralogical process commence, the water content in the slurry has to be evaporated. This process consumes high energy and power.
On the other hand, the dry process is more energy efficient. The raw materials are dried in a combined drying and grinding plant to reduce the moisture content to less than 1%.
Due to regular shifts from wet and semi-dry process nearly 89% of the total industries kiln capacity is at dry process. Of the remaining, 9% is wet process and 2% is semi-dry process. The main advantage of shifting to any process is the 50% saving of coal consumption. The energy costs reduce by 30-40% and the kiln output also increases for a given size kiln, the output for dry process is 250-300/- as compared to 130-150/- for semi-dry and 100% for wet process. The capacity utilization is also higher for dry process plants.
CEMENT BRANDING
Cement has emerged as a commodity product. Brands play important role especially in metros like Delhi, Mumbai, Calcutta, etc, where the established brands suppress the success of smaller brands. Companies have tie-ups with real estate agents and construction companies. Some manufacturers also organize work ships, training and seminars to educate the consumers on the maximum use of a bag full of cement.
COMPANY PROFILE
Lanco industries limited (LIL) was promoted by Lanco Group in 1992 in Chittoor District. A.P LIL setup as a Mini Blast Furnace (MBF) in 1994 with a capacity of 90000 TPA to manufacture and sell Pig Iron to the customers and foundry units across India. In 1998. LIL entered into an agreement to supply Molten Iron and pig Iron to Lanco, Sri Kalahasthi Castings Limited (LKCL) a company within the same campus engaged in the business of Iron castings & forging. LKCL later on added high technology Ductile Iron Pipes (DIP) manufacturing facilities to its portfolio. In March 2002 India’s leading DI Pipes manufacturer, Electro steel Castings Limited (ECL) entered into a strategic alliance with LIL and LKCL by acquiring 46.43 and 48.89 percent stake in the companies respectively. In addition to technological support, ECL also infused fresh fund into LIL by way of equity participation and re-modeled the financial structure, thus reducing interest costs.
In 2003 the capacity of MBF was increased from 90,000 TAP to 1, 50,000 TAP and the capacity of DI Pipes was increased from 60,000 TAP to 90,000 TAP at capital outlay of approx. Rs. 35 corers. In 2003 LKCL got merged with LIL ( with effect from 1st April 2003) to take advantage of the close synergy in the business model of the two companies, since a large part of Pig Iron in liquid form is consumed by LKCL for manufacture of Pipes. In 2004, 1, 50, 000 TAP Coke Oven Plant was setup at capital outlay of Rs. 45 corers.