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Bihar Sponge Iron Ltd.

BSE: 500058 Sector: Metals & Mining
NSE: BIHARSPONG ISIN Code: INE819C01011
BSE LIVE 19:09 | 19 Oct 1.61 -0.08
(-4.73%)
OPEN

1.61

HIGH

1.61

LOW

1.61

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 1.61
PREVIOUS CLOSE 1.69
VOLUME 150
52-Week high 3.13
52-Week low 1.40
P/E
Mkt Cap.(Rs cr) 15
Buy Price 1.61
Buy Qty 2350.00
Sell Price 1.72
Sell Qty 250.00
OPEN 1.61
CLOSE 1.69
VOLUME 150
52-Week high 3.13
52-Week low 1.40
P/E
Mkt Cap.(Rs cr) 15
Buy Price 1.61
Buy Qty 2350.00
Sell Price 1.72
Sell Qty 250.00

Bihar Sponge Iron Ltd. (BIHARSPONG) - Chairman Speech

Company chairman speech

1995 BIHAR SPONGE IRON LIMITED STATEMENT OF THE CHAIRMAN - MANAGEMENT COMMITTEE In tune with the new industrial policy, several significant changes have taken place and as such steel industry has shown signs of improvement. Demand of steel has picked up with the result New Steel units with diversified technologies are being put in. In the changed scenario definitely sponge iron industry has to play an important role and it is expected that this industry will flourish in near future. OPERATIONS The performance of the Plant during past three years had been severely effected due to poor and inconsistent coal quality. The company could achieve a capacity utilisation of maximum 78% to 80%. The consistent and vigorous efforts to bring improvement in coal quality have yielded results and the coal quality has been standardised as per standards defined by Lurgi Frankfurt. A constant check is being maintained to keep the ash percentage within the permissible limits. As a result thereof during the year under review company produced 143208 MT of Sponge Iron and achieved a capacity utilisation of 95.5%. IMPACT OF DEVALUATION The devaluation of rupee against Deutsche Mark since past three years has adversely effected the profitability of the company. The rising Rupee DM. parity from 1 DM = Rs. 8.38 at the time the plant was commissioned to 1 DM = Rs. 22.4850 at present has put extra burden on the company. MARKET SCENARIO Production of sponge iron is being encouraged by Govt. on account of import substitute of scrap. The prospects of sponge iron industry appear bright. The international prices of scrap have touched as high as 195-200 US dollar per ton CIF, with the result the sponge iron prices are also showing increasing trends. It is expected the sponge iron prices shall improve further during 1995-96. FUTURE PLANS As already informed in my last report, with a view to reduce the overall cost of production and make full utilisation of infrastructure facility, it is proposed that another Kiln be installed. A detailed technical study by an industry expert has been undertaken to evaluate the cost of 60000 tpa and 150000 tpa Kiln. M/s M.N. Dastur & Co., company's technical consultants are preparing their report based on the technical study of the expert. They will be submitting their report shortly. The company has been able to obtain the licence for prospecting for four mines for Iron Ore in the State of Bihar. We are planning to make operative these mines, when these are operative, then apart from catering the need of the company, the mines can produce adequate quantities to sell in the market for other sponge iron units as well for steel industries. COMMUNITY DEVELOPMENT The company continues to strive for the upliftment of people living in and around Chandil. The company apart from making available health care facilities for the local people, also regularly organises various development programmes in the fields of Sports, education etc which will go a long way in helping the local people to improve the quality of their life. ACKNOWLEDGEMENT I take this opportunity to thank Bihar State Industrial Development Corporation Ltd. and the Government of Bihar, Lurgi, DEG, International Finance Corporation, Washington as well as The Industrial Finance Corporation of India Ltd, Industrial Development Bank of India, The Industrial Credit and Investment Corporation of India Ltd., Life Insurance Corporation of India, General Insurance Corporation of India, Banks and Investing public for their continued support. I also appreciate the efforts of the Employees of the Company at all levels towards the accomplishment of set goals. UMESH K. MODI Place : New Delhi Date : August 16, 1995.