Kollam-based Kerala Minerals and Metals Limited (KMML) has achieved a record net profit of Rs 153 crore for the year 2011-12. Turnover for the year too was at all-time high at Rs 613 crore.
The company attributed this to improved sales realisation and higher margin for its main product titanium dioxide. The product diversification plan and higher capacity utilisation in its mineral separation unit were other factors that enabled it to achieve this performance, a company release said.
The annual production and sales of one of the byproducts — Zircon —from the mineral separation unit also reached record levels to 5,213 tonne and 5,114 tonne respectively. The sale of another intermediate product, titanium tetrachloride at 1,893 tonne, was also the highest ever.
Though the availability of raw material was a constraint, higher efficiency in production and better financial management helped in maintaining higher margins.
During this financial year, KMML commissioned its 500 tonnes per day titanium sponge project at Chavara, near Kollam, in a joint venture with Vikram Sarabhai Space Centre and Defence Metallurgical Research Laboratory. India becomes the seventh nation in the world with the technology to produce titanium sponge, with the commissioning of this plant. The company also recently bagged the best PSU award from the state government for its performance during 2010-11.
KMML has plans to set up magnesium recovery facilities in the titanium sponge plant. The proposal to increase the capacity of the titanium sponge plant to 1,000 tonnes per annum is also on the anvil. Several companies including public sector Midhani have shown interest for collaboration, the release added.