2002-03 VSP'S TURNAROUND YEAR
Visakhapatanam
Steel Plant (VSP) of Rashtriya Ispat Nigam Limited, a public sector
undertaking of the Ministry of Steel has posted the best turnover
of Rs. 5059 crore during 2002-03, an improvement of 24 per cent
over the total sales of the last year. 2002-03 became the 'year
of turnaround' for the company as it achieved a net profit of
Rs. 450 crore for the first time against a net loss of Rs. 75
crore in 2001-02. During the year it registered a gros margin
of Rs. 1045 crore against Rs. 690 crore in the previous year and
a cash profit of Rs. 910 crore against Rs. 400 crore.
During the year,
all the monthly sales are the best for any month since inception.
The total sales include best domestic sales of Rs. 4,433 crore
and Rs. 626 crore of export sales. While the domestic sales improved
by 19 per cent, exports grew by 69 per cent over last year. VSP
has sold 4.25 lakh tonnes of special steel, a growth of 16 per
cent over last year.
On the production
front, VSP achieved 116 per cent capacity utilisation in respect
of hot metal (3.942 million tonnes) the highest for any steel
plant in the country. Liquid steel production stood at 3.357 million
tonnes and salable steel at 3.056 million tonnes with 112 and
115 per cent utilisation capacity respectively. The capacity utilisation
in respect of other items such as sinter, cast bloom, billet,
bar products, wire rods, medium merchant structural mill and products
ranged from 106 to 113 per cent.
Five key parameters
like innovation and upgradation of the plant equipment, efficient
operations management coupled with optimum waste utilization and
cost reduction measures, marketing policies and strategies aided
by speedy decision making to achieve record sales, healthy human
relations with emphasis on motivation and morale boosting of employees
and dynamic financial and cost management have led to VSP's turnaround
during the year.
