Balasore Alloys chalks out plan to double turnover

Bhubaneswar: In sync with its ambition to become the most-favoured supplier of ferro alloys globally, Balasore Alloys Ltd (BAL) has chalked out a plan to more than double its turnover and raise profits five-fold in the next three years.

"We have worked out strategies to increase the turnover from Rs 587.56 crore during the current fiscal to Rs 1,415.06 crore in 2014-15, registering a jump of 2.41 times," BAL Director (Operations) B N Panda told reporters here.

The Balasore-based company in Odisha, a leading manufacturer of high carbon ferro chrome in the country, aims to raise its turnover to Rs 938.07 crore during the next financial year and to Rs 1,356.07 per cent in 2013-14, he said.

With exports accounting for 35 per cent of its revenues, the company seeks to increase profit-before-tax from Rs 84.06 crore at present to Rs 254.05 crore in the next fiscal and to Rs 431.53 crore in 2014-15, translating into a five-fold rise in the next three years, Panda said.

Similarly, profit-after-tax is sought to be increased to Rs 291.57 crore in 2014-15 from the present level of Rs 56.79 crore, he said, adding that efforts are on to raise the company`s profit-after-tax to Rs 173.44 crore in the coming fiscal.

What is more, in a move aimed at enhancing its customer base in Europe, Japan and Latin American countries, BAL plans to increase its production from 86,534 MT now to 1,23,988 MT next year and up to 1,74,128 MT in 2014-15, Panda said.

Cash accruals would also rise from Rs 72.98 crore at present to Rs 195.23 crore in the next financial year and further to Rs 318.97 crore in 2014-15, he said.

"Our vision is to make the company the most-favoured supplier of quality ferro alloys globally, creating lasting value addition for all stakeholders," the director said.

Stating that the company`s customer base is spread over 33 countries, he said Sino Trust, Marubani, Mitsui, Globus, Toyota, SAIL, Mukund Steel and Mittal Corporation were some of its major customers.

Focusing on maximising sales directly to specialty steel manufacturing companies and end-users, the company has initiated steps for increasing its existing plant capacity, Panda said.

As part of its growth and diversification plans, top priority is being accorded to increasing mining output and diversifying into manganese ore mining and processing, he said.

The company also plans to establish a captive power plant to sustain growth and make operations independent and work related to this initiative is at advanced stages, he said, adding that it would free the company from a major worry in terms of lost production cycles and costs.

Stating that BAL has captive mines of chrome ore, which are used in the production of high carbon ferro chrome, he said the present mining activity is of open cast nature and ore availability is mostly of low grade fines.

To tap the hard lumpy ore strata underground, fully mechanised mining is being planned and preliminary work relating to design and engineering drawing is underway, Panda said.

"It will provide an additional two lakh tonnes of raw material per annum," he said, adding that a new greenfield smelting plant is also being conceived.