RINL output down 11% on IT implementation, power shortage

Production and sales got affected after implementation of a new software and due to power shortage

State-owned Rashtriya Ispat Nigam Ltd has said it is taking all efforts to bridge the shortfall after implementation of a new software and power shortage hit production by 11% in May.

"Production and sales got partially affected during the transition phase from the legacy system to Enterprise Resource Planning (ERP). All efforts are being made to stabilise the new system and it is expected to reap the associated benefits of ERP in the months to come," RINL said in a monthly report.

RINL shifted to SAP's ERP solution during the month with production and marketing modules. This kind of transition takes time to stabilise.

The production was also affected due to power restriction imposed by the Andhra Pradesh State Grid and an one-day flash strike by employees of AP Genco, AP Transco and DISCOMs as protest against delayed implementation of their wage revision.

"The loss of finished steel production because of power restriction was to the tune of 20,000 tonnes (in May)," it said. Overall production of saleable steel during May declined by 11% compared to the same month last year.

To mitigate the impact due to power restrictions and ERP implementation, RINL took up capital repairs of one sinter machine for 17 days and preparatory maintenance activities like shutting down of a blast furnace for three days.

"With progressive stabilisation of ERP and assurances by Andhra Pradesh state government to ease power restrictions, the production in the coming months would pick up. All out efforts will be made to bridge the shortfall progressively and achieve the targeted production, though the targets are highly challenging," it said.

RINL said the implementation of ERP and the stabilisation thereafter had impacted the sales during the first half of the month, but the process was nearing to normalcy. It exported 20,000 tonnes of steel worth Rs 56 crore during the month.