ROHIT FERRO-TECH LIMITED
ANNUAL REPORT 2011-2012
TO OUR STAKEHOLDERS,
At RFTL, our story is not just about manufacturing ferro-alloys but one of
forging ahead despite adversity. Our story is not just of reliably
supplying products but one of relentless pursuit of discipline and
excellence. Our story is not just of reaching out to most parts of the
globe but one of applying practical solutions to face even the most
The year 2011-12 will be remembered as one in which we continued our march
ahead, despite several headwinds, to create a sustainable and future-ready
business model. This is already reflected in the fact that our total
revenues increased to Rs. 1,684.92 crores, EBIDTA to Rs. 188.15 crores in
2011-12 and we exported nearly 62% of ferro-alloys produced which
underlines strong demand of our products in overseas market. When we went
into business and commenced operations, we were firm in building an
enterprise that would not be swayed by short-term challenges but would
stand tall even in the face of the worst crises.
Several financial, operational and organisational initiatives that we have
driven very meticulously into the fabric of our culture have helped create
a business model that is built to face the stress test and thrive. In
particular we have:
* Considerably increased our value chain ownership through the possession
of economic interest in coking coal and thermal coal mines on the one hand
and manufacture of ferro-alloys and stainless steel on the other.
* Extensively enhanced business sustainability through this integration,
which will enable us to capture value across all intervening points of the
chain, extend our geographic footprint to cater to a larger customer base,
open up several new revenue streams and de-risk the enterprise as a whole.
* Significantly optimised overhead expenses by minimising wastages and
maximising output, procuring resources in bulk to reduce input cost and
tapping those pockets which fetch us the best realisations.
Going ahead, we plan to focus on:
* Maximising capacity utilisation to not only generate a larger output but
also to optimise overhead costs.
* Stabilising operations at our greenfield stainless steel plant.
* Enhancing ferro-alloys output at Jajpur through the establishment of an
additional 33 MVA furnace; financial closure for this project has already
* Focusing on developing infrastructure across our Indonesian coal mines.
* Executing works on our 67.5 MW captive power plant as per the blueprint.
I would express my gratitude to our diverse stakeholders, customers,
vendors, bankers, all the staff members and the Board of Directors for
their continued support, enthusiasm and guidance. I look forward to your
continuing patronage and trust in our mission.
Suresh Kumar Patni