February 22, 2002
‘18’
DSP’S INITIATIVES TO EARN MORE PROFIT
Durgapur Steel Plant (DSP) has formulated a 3-pronged strategy to enhance profitability. The first is to enhance the capacities of casters and finishing mills entirely with an Net Sales Realization (NSR) related outlook. A dedicated team comprising officers from DSP, Centre for Engineering & Technology (CET), Ranchi and Research & Development Centre for Iron & Steel (RDCIS), Ranchi has been formed to find possible low-cost technical solutions in this area.The second strategy is to appoint some dedicated conversion agents around Durgapur for semis. DSP has a freight advantage over competitors and its value-added finished products can be positioned competitively.
The third approach is to set up a finishing mill at low cost by utilizing existing idle assets. It has given an assignment to MECON to study the option and submit a feasibility report on utilizing idle assets like old sleeper plant, open hearth furnace etc., to set up a new finishing mill.
It has also laid a tremendous thrust on achieving Rs.110 crore cost control target for the current financial year. It has improved its techno-economics. All these steps may achieve profitability in the next fiscal.