Stir Hits Grasim Cement Packing Unit In Mp

Grasim Industries, the country's third largest cement manufacturer, has been hit by a bout of industrial unrest at its newly expanded cement plant at Raipur, Madhya Pradesh. The workers union, controlled by the All India Trade Union Congress, has gone on strike at the plant's cement packing unit since the last 10 days.

As a result, the unit has built up a huge inventory of over 30 days. The company had set a benchmark of 180 tonne per hour at the packing unit. However, the union felt this was unjustified, a company source said.

After first having adopted a 'go-slow' tactic, the unions decided on a total boycott of all activities at the packing plant ten days ago. The management has been forced to make-do with contract labourers since then, operating at less than 60 per cent of the benchmark target.

 

The resultant inventory is in the nature of 105,000 tonnes of clinker, sources said. As the plant manufactures portland slag cement (PSC), which has 55 per cent of clinker, 35-40 per cent of slag and rest gypsum, this translates into about 200,000 tonne of cement, the source added.

"We were shocked at the union's decision as, in the past, they themselves have operated at the benchmark level. The problem is now been dealt by the labour commissioner's office and we hope all workers will rejoin within another week," the source added.

"As the busy season is approaching, the inventory pile-up might also turn out to be a major plus point for the company if cement prices continue rising in the south," the source said.

The capacity of the Raipur plant was expanded to 1.5 million tonne last year. The unit caters to almost the entire eastern market as well major portions of Grasim's southern market. It takes advantage of the availability of blast furnace slag from the nearby Bhilai Steel Plant.

Industry sources, however, feel the strike might not have come at the right time for Grasim as the southern market, particularly Andhra Pradesh, is at present vastly cement deficit. The state along with Maharashtra, accounts for over 30 per cent of Grasim's cement sales. Andhra also has been experiencing the highest price rise since the Union Budget. The eastern region, however, is facing a cement surplus, and prices have dipped about Rs 2 for every 50 kg bag.