Ispat Profiles Plans To Alter Its Products' Portfolio

The Mittals-promoted Ispat Profiles India, is in the process of implementing a strategic shift in its product profiles, from structural beams to automotive parts, in a bid to propel the ailing company towards profitability.

Addressing shareholders at the company's 10th annual general meeting in Calcutta yesterday, M L Mittal, chairman, Ispat Profiles, said though the company has not been a high performer in recent years, the production and operation base of the company is on a firmer footing than it was two years ago. This was achieved due to implementation of various stringent measures which included a thrust on product quality and strategic shifts in the market segment served _ from structurals to automobiles.

 

This has enabled the company to expand its customer base and develop a higher flexibility and responsiveness to changing market needs.

Last year, the company had undertaken revaluation of its fixed assets. This was the second time that the company has revalued its fixed assets since 1995.

During the year, the company sustained series of setbacks in operations due to rise in power tariffs, cheaper imports, transporters strike and overhauling of the bloom reheating furnace - one of the critical equipment in the process line. However, damage-control measures have enabled the company to produce 1,21,463 tonne during the year.

Turnover rose to Rs 235 crore against Rs 208 crore last year, registering an increase of 12.98 per cent. The company also concentrated on expanding its overseas markets and as result export sales rose to Rs 13.68 crore.

Additional measures to boost the company's premium segments such as ball bearing, rock drilling, fine grain steel, boron steel, thin section seamless tube, free cutting steels and case hardening steels have also been undertaken. The company also plans to extend its reach to smaller and higher value added segments.