“A STUDY ON FINANCIAL PERFORMANCE ANANLYSIS” (WITH REFERENCE TO KESORAM CEMENT) A Project report submitted to Jawaharlal Nehru Technological Universit y, Hyderabad, for the award of degree MASTER OF BUSINESS ADMINISTRATION By M.VIKRAM SINGH Reg. No. 10241E0028 Under the Guidance of Prof. KVS RAJU Department of Management Studies Gokaraju Rangaraju Institute of Engineering & Tech nology (Affiliated to Jawaharlal Technological University, Hy derabad) Hyderabad 2010-2012
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“A STUDY ON FINANCIAL PERFORMANCE ANANLYSIS”
(WITH REFERENCE TO KESORAM CEMENT)A Project report submitted to Jawaharlal Nehru Technological University, Hyderabad, for the
award of degree
MASTER OF BUSINESS ADMINISTRATION
By
M.VIKRAM SINGH
Reg. No. 10241E0028
Under the Guidance of
Prof. KVS RAJU
Department of Management Studies
Gokaraju Rangaraju Institute of Engineering & Technology
(Affiliated to Jawaharlal Technological University, Hyderabad)
Hyderabad
2010-2012
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2
3
DECLARATION
I hereby declare that the project entitled “A study on financial performance
analysis at Kesoram
Cement” submitted in partial fulfillment of the requirements for
award of the degree of MBA at Gokaraju Rangaraju Institute of Engineering and
Technology, affiliated to Jawaharlal Nehru Technological University, Hyderabad, is
an authentic work and has not been submitted to any other University/Institute for
award of any degree/diploma.
M.VIKRAM SINGH
(10241e0028)
MBA, GRIET
HYDERABAD
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ACKNOWLEDGEMENT
Firstly I would like to express our immense gratitude towards our institution
Gokaraju Rangaraju Institute of Engineering & Technology, which created a
great
platform to attain profound technical skills in the field of MBA, thereby fulfilling our most
cherished goal.
I would thank all the finance department of Kesoram specially Mr. MURTHY ASST
Manager Finance for guiding me and helping me in successful completion of the project
I am very much thankful to our Prof. KVS RAJU (Internal Guide) sir for extending
his cooperation in doing this project.
I am also thankful to our project coordinator Prof. S. RAVINDRA CHARY for
extending his cooperation in completion of Project..
I convey my thanks to my beloved parents and my faculty who helped me directly or
indirectly in bringing this project successfully.
M. VIKRAM SINGH
(10241E0028)
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INDEX
S.No: Contents Page No.
Chapter-1 1-8
Introduction
Need of the Study
Objectives of the Study
Methodology of the Study
Limitations of the Study
Chapter-2 9-28
Industry Profile
Company Profile
Chapter-3 29-38
Review of Literature
Chapter-4 39-68
Data Analysis And Interpretation
Chapter-5 69-71
Findings
Suggestions
Chapter-6 72-75
Annexure
Bibliography
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CHAPTER-I
INTRODUCTION
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Introduction:-
The term ‘financial performance analysis also known as analysis and interpretation
of financial statements’ , refers to the process of determining financial strength and
weaknesses of the firm by establishing strategic relationship between the items of the
balance sheet , profit and loss account and other operative data.
“Financial performance analysis is a process of evaluating the relationship between
component parts of a financial statement to obtain a better understanding of a firm’s
position and performance.
The purpose of financial analysis is to diagnose the information contained in
financial statements so as to judge the profitability and financial soundness of the firm. Just
like a doctor examines his patient by recording his body temperature, blood pressure etc.
Before making his conclusion regarding the illness and before giving his treatment. A
financial analyst analyses the financial statements with various tools of analysis before
commenting upon the financial health or weaknesses of an enterprise.
The analysis and interpretation of financial statements is essential to bring out the
mystery behind the figures in financial statements. Financial statements analysis is an
attempt to determine the significance and meaning of the financial statement data so that
forecast may be made of the future earnings, ability to pay interest and debt maturities (both
current and long term) and profitability of a sound divided policy.
Financial performance refers to the act of performing financial activity. In broader sense,
financial performance refers to the degree to which financial objectives being or has been
accomplished. It is the process of measuring the results of a firm's policies and operations in
monetary terms. It is used to measure firm's overall financial health over a given period of
time and can also be used to compare similar firms across the same industry or to compare
industries or sectors in aggregation.
In short, the firm itself as well as various interested groups such as managers,
shareholders, creditors, tax authorities, and others seeks answers to the
Following important questions:
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1. What is the financial position of the firm at a given point of time?
2. How is the financial performance of the firm over a given period?
Of time?
These questions can be answered with the help of financial analysis of a firm. Financial
analysis involves the use of financial statements. A financial statement is an organized
collection of data according to logical and conceptual framework 50 consistent accounting
procedures. Its purpose is to convey an understanding of some financial aspects of a
business firm. It may show a position at a moment of time as in the case of a balance sheet,
or may reveal a series of activities over a given period of time, as in the case of an income
statement.
Thus, the term ‘financial statements’ generally refers to two basic statements:
The balance sheet and the income statement.
The balance sheet shows the financial position (condition) of the firm at a given point of
time. It provides a snapshot and may be regarded as a static picture.
“Balance sheet is a summary of a firm’s financial position on a given date that
Shows total assets = total liabilities + owner’s equity.”
The income statement (referred to in India as the profit and loss statement) reflects the
performance of the firm over a period of time.
“Income statement is a summary of a firm’s revenues and expenses over a specified period,
ending with net income or loss for the period.”
However, financial statements do not reveal all the information related to the financial
operations of a firm, but they furnish some extremely useful information, which highlights
two important factors profitability and financial soundness. Thus analysis of financial
statements is an important aid to financial performance analysis. Financial performance
analysis includes analysis and interpretation of financial statements in such a way that it
Undertakes full diagnosis of the profitability and financial soundness of the business.
“The analysis of financial statements is a process of evaluating the relationship between
component parts of financial statements to obtain a better understanding of the firm’s
position and performance.”
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Need for Study
Need Of Financial Management Study To Diagnose The Information Contain In
Financial Statement. So as To Judge the Profitability and Financial Position of the
Firm.
Financial Analyst Analyses The Financial Statements With Various Tools Of
Analysis Before Commanding Upon The Financial Health Of The Firm.
Essential to Bring Out the History.
Significance and Meaning of the Financial Statements.
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Objectives:
1. To understand the financial statements of Kesoram cement.
2. To study the change in assets and liabilities of the company.
3. To study the liquidity position of the firm.
4. To study the financial health of the company using ratio analysis.
5. To study the profitability of the company.
6. To offer suggestions to the company.
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Significance of Financial Performance Analysis
Interest of various related groups is affected by the financial performance of a firm.
Therefore, these groups analyze the financial performance of the firm. The type of analysis
varies according to the specific interest of the party involved.
Trade creditors: interested in the liquidity of the firm (appraisal of firm’s liquidity)
Bond holders: interested in the cash-flow ability of the firm (appraisal of firm’s capital
structure, the major sources and uses of funds, profitability over time, and projection of
future profitability).
Investors: interested in present and expected future earnings as well as stability of these
earnings (appraisal of firm’s profitability and financial condition).
Management: interested in internal control, better financial condition and better
performance (appraisal of firm’s present financial condition, evaluation of opportunities in
relation to this current position, return on investment provided by various assets of the
company, etc)
Research Methodology
Research Design
This is a systematic way to solve the research problem and it is important
component for the study without which researches may not be able to obtain the format. A
research design is the arrangement of conditions for collection and analysis of data in a
manager that aims to combine for collection and analysis of data relevance to the research
purpose with economy in procedure.
Meaning of Research Design
The formidable problem that follows the task of defining the research problem is the
preparation of design of the research project, popularly known as the research design,
decision regarding what, where, when, how much, by what means concerning an inquiry of
a research study constitute a research design. A research design is the arrangement of
conditions for collection and analysis of data in a manager that aims to combine for
collection and analysis of data relevance to the research purpose with economy in
procedure.
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Sources of Data
Data we collected based on two sources.
Primary Data.
Secondary Data.
Primary Data
The Primary Data Are Those Information’s, which are Collected afresh and for the
First Time, And Thus Happen to Be Original in Character.
Secondary Data:
The secondary data are those which have already been collected by some other agency and
which have already been processed. The sources of secondary data are annual reports,
browsing internet, through magazines.
1. It includes data gathered from the annual reports of Kesoram.
2. Articles are collected from official website of Kesoram.
Methodology Used:
Types Of Financial Statements Adopted:
Following Two Types of Financial Statements Are Commonly Used in
Analyzing the Firm’s Financial Position
a. Balance Sheet.
b. Income Statements.
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Limitations of Financial Statement:
Each Project Gives Rise to Its Own Unique Risks And Hence Possess Its Own Unique
Challenges.
1. Only Interim Reports:
Only interim statements don’t give a final picture of the concern. The data given in
these statements is only approximate. The actual position can only be determined when the
business is sold or liquidated.
2. Don’t Give Extra Position:
The Financial Statements Are Expressed In Monetary Values, So They Appear To
Give Final And Accurate Position. The Values Of Fixed Assets In The Balance Sheet
Neither Represent The Value For Which Fixed Assets Can Be Sold Nor The Amount Which
Will Be Required To Replace These Assets.
3. Historical Costs:
The Financial Statements Are Prepared On The Basis Of Historical Costs Or
Original Costs. The Value of Assets Decreases with the Passage of Time Current Price
Changes Are Not Taken Into Account. The Statements Are Not Prepared Keeping In View
The Present Economic Conditions. The Balance Sheet Loses The Significance Of Being An
Index Of Current Economic Realities.
4. Act of non monitory factors Ignored:
There are certain factors which have a bearing on the financial position and
operating results of the business but they don’t become a part of these statements because
they can’t be measured in monetary terms. Such factors may include in the reputation of the
management.
No Precision:
The precision of financial statement data is not possible because the statements deal with
matters which can’t be precisely stated. The data are recorded by conventional procedures
followed over the years. Various conventions, postulates, personal judgments etc.
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CHAPTER-II
INDUSTRY PROFILE
&
COMPANY PROFILE
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Industry Profile:
In the most general sense of the word, cement is a binder, a substance which
sets and hardens independently, and can bind other materials together. The word "cement"
traces to the Romans, who used the term "opus caementicium" to describe masonry which
resembled concrete and was made from crushed rock with burnt lime as binder. The
volcanic ash and pulverized brick additives which were added to the burnt lime to obtain a
hydraulic binder were later referred to as cementum and cement. Cements used in
construction are characterized as hydraulic or non-hydraulic.
The most important use of cement is the production of mortar and concrete—the bonding of
natural or artificial aggregates to form a strong building material which is durable in the
face of normal environmental effects.
Concrete should not be confused with cement because the term cement refers only to the dry
powder substance used to bind the aggregate materials of concrete. Upon the addition of
water and/or additives the cement mixture is referred to as concrete, especially if aggregates
have been added.
It is uncertain where it was first discovered that a combination of hydrated non-hydraulic
lime and a pozzolan produces a hydraulic mixture (see also: Pozzolanic reaction), but
concrete made from such mixtures was first used on a large scale by engineers. They used
both natural pozzolans (trass or pumice) and artificial pozzolans (ground brick or pottery) in
these concretes. Many excellent examples of structures made from these concretes are still
standing, notably the huge monolithic dome of the Pantheon in Rome and the massive Baths
of Caracalla. The vast system of Roman aqueducts also made extensive use of hydraulic
cement. The use of structural concrete disappeared in medieval Europe, although weak
pozzolanic concretes continued to be used as a core fill in stone walls and columns.
Modern cement
Modern hydraulic cements began to be developed from the start of the Industrial Revolution
(around 1800), driven by three main needs:
Hydraulic renders for finishing brick buildings in wet climates
Hydraulic mortars for masonry construction of harbor works etc, in contact with sea water.
Development of strong concretes.
In Britain particularly, good quality building stone became ever more expensive during a
period of rapid growth, and it became a common practice to construct prestige buildings
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from the new industrial bricks, and to finish them with a stucco to imitate stone. Hydraulic
limes were favored for this, but the need for a fast set time encouraged the development of
new cements. Most famous was Parker's "Roman cement." This was developed by James
Parker in the 1780s, and finally patented in 1796. It was, in fact, nothing like any material
used by the Romans, but was “Natural cement" made by burning septaria - nodules that are
found in certain clay deposits, and that contain both clay minerals and calcium carbonate.
The burnt nodules were ground to a fine powder. This product, made into a mortar with
sand, set in 5–15 minutes. The success of "Roman Cement" led other manufacturers to
develop rival products by burning artificial mixtures of clay and chalk.
John Smeaton made an important contribution to the development of cements when he was
planning the construction of the third Eddystone Lighthouse (1755-9) in the English
Channel. He needed a hydraulic mortar that would set and develop some strength in the
twelve hour period between successive high tides. He performed an exhaustive market
research on the available hydraulic limes, visiting their production sites, and noted that the
"hydraulicity" of the lime was directly related to the clay content of the limestone from
which it was made. Smeaton was a civil engineer by profession, and took the idea no
further. Apparently unaware of Smeaton's work, the same principle was identified by Louis
Vicat in the first decade of the nineteenth century. Vicat went on to devise a method of
combining chalk and clay into an intimate mixture, and, burning this, produced an "artificial
cement" in 1817. James Frost, working in Britain, produced what he called "British cement"
in a similar manner around the same time, but did not obtain a patent until 1822. In 1824,
Joseph Aspdin patented a similar material, which he called Portland cement, because the
render made from it was in color similar to the prestigious Portland stone.
All the above products could not compete with lime/pozzolan concretes because of fast-
setting (giving insufficient time for placement) and low early strengths (requiring a delay of
many weeks before formwork could be removed). Hydraulic limes, "natural" cements and
"artificial" cements all rely upon their belite content for strength development. Belite
develops strength slowly. Because they were burned at temperatures below 1250 °C, they
contained no alite, which is responsible for early strength in modern cements. The first
cement to consistently contain alite was made by Joseph Aspdin's son William in the early
1840s. This was what we call today "modern" Portland cement. Because of the air of
mystery with which William Aspdin surrounded his product, others (e.g. Vicat and I C
Johnson) have claimed precedence in this invention, but recent analysis of both his concrete
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and raw cement have shown that William Aspdin's product made at North fleet, Kent was a
true alite-based cement. However, Aspdin's methods were "rule-of-thumb": Vicat is
responsible for establishing the chemical basis of these cements, and Johnson established
the importance of sintering the mix in the kiln.
William Aspdin's innovation was counter-intuitive for manufacturers of "artificial cements",
because they required more lime in the mix (a problem for his father), because they required
a much higher kiln temperature (and therefore more fuel) and because the resulting clinker
was very hard and rapidly wore down the millstones which were the only available grinding
technology of the time. Manufacturing costs were therefore considerably higher, but the
product set reasonably slowly and developed strength quickly, thus opening up a market for
use in concrete. The use of concrete in construction grew rapidly from 1850 onwards, and
was soon the dominant use for cements. Thus Portland cement began its predominant role.
It is made from water and sand.
Types of modern cement:
Portland cement:
Cement is made by heating limestone (calcium carbonate), with small quantities of other
materials (such as clay) to 1450°C in a kiln, in a process known as calcination, whereby a
molecule of carbon dioxide is liberated from the calcium carbonate to form calcium oxide,
or lime, which is then blended with the other materials that have been included in the mix .
The resulting hard substance, called 'clinker', is then ground with a small amount of gypsum
into a powder to make 'Ordinary Portland Cement', the most commonly used type of cement
(often referred to as OPC).
Portland cement is a basic ingredient of concrete, mortar and most non-speciality grout. The
most common use for Portland cement is in the production of concrete. Concrete is a
composite material consisting of aggregate (gravel and sand), cement, and water. As a
construction material, concrete can be cast in almost any shape desired, and once hardened,
can become a structural (load bearing) element. Portland cement may be gray or white.
Portland cement blends
These are often available as inter-ground mixtures from cement manufacturers, but similar
formulations are often also mixed from the ground components at the concrete mixing plant.
Portland blast furnace cement contains up to 70% ground granulated blast furnace
slag,
with the rest Portland clinker and a little gypsum. All compositions produce high ultimate
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strength, but as slag content is increased, early strength is reduced, while sulfate resistance
increases and heat evolution diminishes. Used as an economic alternative to Portland
sulfate-resisting and low-heat cements.
Portland fly ash cement contains up to 30% fly ash. The fly ash is pozzolanic, so that
ultimate strength is maintained. Because fly ash addition allows lower concrete water
content, early strength can also be maintained. Where good quality cheap fly ash is
available, this can be an economic alternative to ordinary Portland cement.
Portland pozzolan cement includes fly ash cement, since fly ash is a pozzolan, but also
includes cements made from other natural or artificial pozzolans. In countries where
volcanic ashes are available (e.g. Italy, Chile, Mexico, and the Philippines) these cements
are often the most common form in use.
Portland silica fume cement. Addition of silica fume can yield exceptionally hig
h
strengths, and cements containing 5-20% silica fume are occasionally produced. However,
silica fume is more usually added to Portland cement at the concrete mixer.
Masonry cements are used for preparing bricklaying mortars and stuccos, and must not be
used in concrete. They are usually complex proprietary formulations containing Portland
clinker and a number of other ingredients that may include limestone, hydrated lime, air
entrainers, retarders, water proofers and coloring agents. They are formulated to yield
workable mortars that allow rapid and consistent masonry work. Subtle variations of
Masonry cement in the US are Plastic Cements and Stucco Cements. These are designed to
produce controlled bond with masonry blocks.
Expansive cements contain, in addition to Portland clinker, expansive clinkers (usually
sulfoaluminate clinkers), and are designed to offset the effects of drying shrinkage that is
normally encountered with hydraulic cements. This allows large floor slabs (up to 60 m
square) to be prepared without contraction joints.
White blended cements may be made using white clinker and white supplementary
materials such as high-purity metakaolin.
Colored cements are used for decorative purposes. In some standards, the addition of
pigments to produce "colored Portland cement" is allowed. In other standards (e.g. ASTM),
pigments are not allowed constituents of Portland cement, and colored cements are sold as
"blended hydraulic cements".
Very finely ground cements are made from mixtures of cement with sand or with slag or
other pozzolan type minerals which are extremely finely ground together. Such cements can
19have the same physical characteristics as normal cement but with 50% less cement
particularly due to their increased surface area for the chemical reaction. Even with
intensive grinding they can use up to 50% less energy to fabricate than ordinary Portland
cements.
Non-Portland hydraulic cements
Pozzolan-lime cements. Mixtures of ground Pozzolan and lime are the cements used by the
Romans, and are to be found in Roman structures still standing (e.g. the Pantheon in Rome).
They develop strength slowly, but their ultimate strength can be very high. The hydration
products that produce strength are essentially the same as those produced by Portland
cement.
Slag-lime cements. Ground granulated blast furnace slag is not hydraulic on its own, but is
"activated" by addition of alkalis, most economically using lime. They are similar to
pozzolan lime cements in their properties. Only granulated slag (i.e. water-quenched, glassy
slag) is effective as a cement component.
Super sulfated cements. These contain about 80% ground granulated blast furnace slag,
15% gypsum or anhydrite and a little Portland clinker or lime as an activator. They produce
strength by formation of ettringite, with strength growth similar to a slow Portland cement.
They exhibit good resistance to aggressive agents, including sulfate.
Calcium aluminate cements are hydraulic cements made primarily from limestone and
bauxite. The active ingredients are monocalcium aluminate CaAl2O4 (CaO · Al2O3 or CA in
Cement chemist notation, CCN) and mayenite Ca12Al14O33 (12 CaO · 7 Al2O3, or C12A7 in
CCN). Strength forms by hydration to calcium aluminate hydrates. They are well-adapted
for use in refractory (high-temperature resistant) concretes, e.g. for furnace linings.
Calcium sulfoaluminate cements are made from clinkers that include ye'elimite (C
a4
(AlO2)6SO4 or C4A3 in Cement chemist's notation) as a primary phase. They are used in
expansive cements, in ultra-high early strength cements, and in "low-energy" cements.
Hydration produces ettringite, and specialized physical properties (such as expansion or
rapid reaction) are obtained by adjustment of the availability of calcium and sulfate ions.
Their use as a low-energy alternative to Portland cement has been pioneered in China,
where several million tonnes per year are produced. Energy requirements are lower because
of the lower kiln temperatures required for reaction and the lower amount of limestone
(which must be endothermically decarbonated) in the mix. In addition, the lower limestone
content and lower fuel consumption leads to a CO2 emission around half that associated
with Portland clinker. However, SO2 emissions are usually significantly higher.
"Natural" Cements correspond to certain cements of the pre-Portland era, produced by
burning argillaceous limestones at moderate temperatures. The level of clay components in
the limestone (around 30-35%) is such that large amounts of belite (the low-early strength,
high-late strength mineral in Portland cement) are formed without the formation of
excessive amounts of free lime. As with any natural material, such cements have highly
variable properties.
Geopolymer cements are made from mixtures of water-soluble alkali metal silicates and
aluminosilicate mineral powders such as fly ash and metakaolin.
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COMPANY PROFILE
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Kesoram Cement Industry is one of the leading manufacturers of cement in India. It is a day
process cement Plant. The plant capacity is 8.26 lakh tones per annum It is located at
Basanthnagar in Karimnagar district of Andhra Pradesh. Basanthnagar is 8 km away from
the Ramagundam Railway station, linking Madras to New Delhi. The Chairman of the
Company is B.K.Birla,
History:
The first unit at Basanthnagar with a capacity of 2.1 lakh tones per
annum
incorporating humble suspension preheated system was commissioner during the year 1969.
The second unit was setup in year 1971 with a capacity of 2.1 lakh tones per annum went on
stream in the year 1978. The coal for this company is being supplied from Singgareni
Collieries and the power is obtained from APSEB. The power demand for the factory is
about 21 MW. Kesoram has got 2 DG sets of 4 MW each installed in the year 1987.
Kesoram Cement has setup a 15 KW captor power plant to facilitate for
uninterrupted power supply for manufacturing of cement at 24th august 1997 per hour 12
mw, actual power is 15 mw.
The Company was incorporated on 18th October, 1919 under the Indian Companies Act,
1913, in the name and style of Kesoram Cotton Mills Ltd. It had a Textile Mill at 42,
Garden Reach Road, Calcutta 700 024. The name of the Company was changed to Kesoram
Industries & Cotton Mills Ltd. on 30th
August, 1961 and the same was further changed to Kesoram Industries Limited on 9th July,
1986. The said Textile Mill at Garden Reach Road was eventually demerged into a separate
company.
The First Plant for manufacturing of rayon yarn was established at Tribeni, District
Hooghly, West Bengal and the same was commissioned in December, 1959 and the second
plant was commissioned in the year 1962 enabling it to manufacture 4,635 metric tons per
annum (mtpa) of rayon yarn. This Unit has 6,500 metric tons per annum (mtpa) capacity as
on 31.3.2009.
The plant for manufacturing of transparent paper was also set up at the same location at
Tribeni, District Hooghly, West Bengal, in June, 1961. It has the annual capacity to
manufacture 3,600 metric tons per annum (mtpa) of transparent Paper.
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The Company diversified into manufacturing of cast iron spun pipes and pipe fittings at
Bansberia, District Hooghly, West Bengal, with a production capacity of 45,000 metric tons
per annum (mtpa) of cast iron spun pipes and pipe fittings in December, 1964.
The Company subsequently diversified into the manufacturing of Cement and in 1969
established its first cement plant under the name 'Kesoram Cement' at Basantnagar, Dist.
Karimnagar (Andhra Pradesh) and to take advantage of favorable market conditions, in
1986 another cement plant, known as 'Vasavadatta Cement', was commissioned by it at
Sedam, Dist.
Gulbarga (Karnataka). The cement manufacturing capacities at both the plants were
augmented from time to time according to the market conditions and as on 31.3.2009
Kesoram Cement and Vasavadatta Cement have annual cement manufacturing capacities of
1.5 million metric tons and 4.1 million metric tons respectively.
The Company in March 1992, commissioned a plant at Balasore known as Birla Tyres in
Orissa, for manufacturing of 10 lakh mtp.a. automotive tyres and tubes in the first phase in
collaboration with Pirelli Ltd., U.K., a subsidiary company of the world famous Pirelli
Group of Italy - a pioneer in production and development of automotive tyres in the world.
The capacity at the said plant was further augmented during the year by 19 MT per day
aggregating to 271 MT per day production facility. The Greenfield Project of 257 MT per
day capacity in the State of Uttarakhand with a capex of about Rs.760 crores commenced
the commercial production in phases during the financial year 2008-09.The Company as on
31.3.2009 had the manufacturing capacities of 3.71 million tyres, 2.95 million tubes and
1.53 million flaps per annum in the Plants including at Uttarakhand Plant. It has small
manufacturing capacities of various Chemicals at Kharda in the State of West Bengal also.
It has the annual manufacturing capacities of 12,410 mtpa of Caustic Soda Lye, 5,045 mtpa
of Liquid Chlorine, 6,205 mtpa of Sodium Hypochlorite, 8,200 mtpa of Hydrochloric Acid,
3,200 mtpa of Ferric Alum, 18,700 mtpa of Sulphuric Acid and 1,620,000 m3pa of purified
Hydrogen Gas.
The Company is a well-diversified entity in the fields of Cement, Tyre, Rayon Yarn,
Transparent Paper, Spun Pipes and Heavy Chemicals with two core business segments i.e.
Cement and Tyres.
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In Spun Pipes & Foundries, a unit of the Company, work suspended from 2nd May, 2008
still commences till further notice.
The Company as of now is listed on three major Stock Exchanges in India i.e. Bombay
Stock Exchange Ltd., Mumbai, Calcutta Stock Exchange Association Ltd., Kolkata and
National Stock Exchange of India Ltd., Mumbai and at the Societe de la Bourse de
Luxembourg, Luxembourg.
A further expansion upto 1.65 million tons of cement per annum in Vasavadatta Cement at
Sedam in Karnataka as unit IV at the same site is in progress, with a 17.5 MW Captive
Power Plant, involving a capital expenditure of about Rs. 783.50 crores (including the cost
of Captive Power Plant).
The commercial production of cement in the aforesaid unit IV has commenced in June
2009. The work for the further expansion in the Tyres Section at Uttarakhand for radial
tyres with 100 MT per day capacity and bias tyres with 125 MT per day capacity involving
an estimated aggregate capital outlay of about Rs. 840 crores is under progress. The Board
has further approved a Motor Cycle Tyre Project of 70 MT per day capacity at the same site
involving a capital outlay of Rs.190 crore. The civil construction of both the Projects is in
full swing. The commercial production in both the Projects is likely to start by December
2009/ January 2010.
Birla Supreme in popular brand of Kesoram cement from its prestigious plant of
Basantnagar in AP which has outstanding track record. In performance and productivity
serving the nation for the last two and half decades. It has proved its distinction by bagging
several national awards. It also has the distinction of achieving optimum capacity
utilization.
Kesoram offers a choice of top quality portioned cement for light, heavy
constructions and allied applications. Quality is built every fact of the operations.
The plant lay out is rational to begin with. The limestone is rich in calcium
carbonate a key factor that influences the quality of final product. The day process
technology uses in the latest computerized monitoring overseas the manufacturing process.
Samples are sent regularly to the bureau of Indian standards. National council of
construction and building material for certification of derived quality norms.
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The company has vigorously undertaking different promotional measures for
promoting their product through different media, which includes the use of news papers
magazine, hoarding etc.
Kesoram cement industry distinguished itself among all the cement factories in
Indian by bagging the National Productivity Award consecutively for two years i.e. for the
year 1985-1987. The federation of Andhra Pradesh Chamber & Commerce and Industries
(FAPCCI) also conferred on Kesoram Cement. An award for the best industrial promotion
expansion efforts in the state for the year 1984. Kesoram also bagged FAPCCI awarded for
“Best Family Planning Effort in the state” for the year 1987-1988.
One among the industrial giants in the country today, serving the nation on the
industrial front. Kesoram industry ltd. has a checked and eventful history dating back to the
twenties when the Industrial House of Birla’s acquired it. With only a textile mill under its
banner 1924, it grew from strength to strength and spread its activities to newer fields like
Rayon, Transparent paper, pipes, Refractors, tyres and other products.
Looking to the wide gap between the demand and supply of vital commodity
cement, which play in important role in National building activity the Government of India,
had de-licensed the cement industry in the year 1966 with a review to attract private
entrepreneur to augment the cement production. Kesoram rose to the occasions and divided
to set up a few cement plants in the country.
Kesoram cement undertaking marketing activities extensively in the state of Andhra
Pradesh, Karnataka, Tamilnadu, Kerala, Maharashtra and Gujarat. In A.P. sales Depts., are
located in different areas like Karimnagar, Warangal, Nizamabad, Vijayawada and Nellore.
In other states it has opened around 10 depots.
The market share of Kesoram Cement in AP is 7.05%. The market share of the
company in various states is shown as under.
STATES MARKET SHARE
Karnataka 4.09%
Tamilnadu 0.94%
Kerala 0.29%
Maharashtra 2.81%
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Process and Quality Control:
It has been the endeavor of Kesoram to incorporate the World’s latest technology in
Comprehensive
Strength
Opc 43
grls 8112
1989
Birla
Supreme 43
grade
Opc 43 gr
Is 1226987
Birla
Supreme
Gold 53 gr
3 days mpa Min. 23 31 + Min. 27 38+
7 days mpa Min. 23 42+ Min. 37 48+
28 days mpa Min. 43 50+ Min. 53 60+
the plant and today the plant has the most sophisticated.
X-ray analysis:
Fully computerized XRF and XRD X-RAY Analyzers keep a constant round the
clock vigil on quality.
Supreme performance:
One of the largest Cement Plants in Andhra Pradesh, the plant incorporate the latest
technology in Cement - making.
It is professionally managed and well established Cement Manufacturing Company
and gives good shade.Both the products offered by Kesoram, i.e. BIRLA SUPREME-43 Grade and
BIRLA SUPREME-GOLD-53 Grade cement are outstanding with much higher
compressive strength and durability.
The following characteristics show their distinctive qualities.
27
D.C. SYSTEM:
Ope 43
Is 8 112-89
Birla
Supreme
43 grade
Ope 53 gr
Is 12269-87
Birla Supreme
Gold 53 gr
Setting time
a. Initial (mats)
b. final (mats)
Fincncssm 2/Kg
Soundness
a. le-chart (mm)
b. autoclave (%)
Min30
Max 600
Min 225
Max 10
Max 0.8
120-180
180-240
270-280
1.0-2.0
0.04-0.08
Min 30
Max 600
. Min 225
Max 10
Max 0.080.
130-170
170-220
300-320
0.5-1.0
0.04-0.2
Physical
Clinker making process is a key step in the overall cement making process. In the case of
BIRLA SUPREME/GOLD, the clinker-making process is totally computer. control. The
Distributed Control System (DCS) constantly monitors the process and ensures operating
Supreme Expertise:
The Best Technical Team, exclusive to Kesoram, mans the Plant and monitors the process,
to blend the cement in just the required proportions, to make BIRLA SUPREME/GOLD OF
Rock Strength.
18 Million Tones of Solid Foundation:
Staying at the top for over a Quarter Century, Quarter Century is no less an achievement.
Infact. Kesoram is synonymous with for over 28 years.
Over the years, Kesoram has dispatched 18 million tones of cement to the nook and corners
of the country and joined hands in strengthening the Nation. No one else in Andhra Pradesh
has this distinction. The prestigious World Bank aided Ramagundam Super Thermal Power
Project of NTPC and Mannair Dam of Pochampad project in AP arc a couple of projects for
which Kesoram Cement was exclusively uses: to cite an example.