Highest-ever saleable steel production of over 12 MT; 6% growth
Lowest-ever specific consumption of coke, energy, power
Surpassing all previous records in physical performance, Steel Authority of India Limited (SAIL) achieved all-time high saleable steel production of over 12 million tonnes (MT) during the financial year 2005-06. The company also recorded highest-ever total sales of over 11.2 MT during the year. In addition, the company attained new heights in efficiency parameters during the year by adopting new operational initiatives like alternate fuel injection, etc. The audited financial results of the company for FY ÔÇÖ06 will be announced in May 2006.
In tune with the target set in its Corporate Plan 2012, SAIL operated all its blast furnaces in 2005-06 at record-breaking 107% average capacity utilisation, enabling best-ever production of hot metal at 14.6 MT (11% growth) and crude steel at 13.5 MT (8% growth), leading to 6% increase in saleable steel output. In volume terms, the SAIL plants produced an additional 1 MT of crude steel and 7.5 lakh tonnes of saleable steel during the year. This impressive performance was supported by the captive mines of SAIL meeting 100% requirement of iron ore, with all-time best despatches of 22 MT in 2005-06.
The company continued with its strategy of utilising the available potential of existing units and optimising production of value-added products through the continuous casting route. Record continuous cast production of 7.9 MT showed a growth of 4% over the previous year. The special steels plants of SAIL also recorded highest-ever saleable steel production of 4.2 lakh tonnes ÔÇô a growth of 12% over 2004-05.
Besides injection of alternate fuels like coal dust and tar in blast furnaces, initiatives such as maximising sinter usage, improving gas management, optimising equipment usage and controlling idle operations in the plants enabled the company to achieve record lows in coke rate as well as energy and power consumption in 2005-06. Energy consumption of 7.24 giga calories per tonne of crude steel saw a reduction of 2% over 2004-05, power consumption at 483 Kwh per tonne of saleable steel was lower by 3%, and coke rate decreased by 5 kgs to 544 kg per tonne of hot metal.
The surging production performance was complemented by record sales of over 11.2 MT during 2005-06. Exports of steel by SAIL at half a million tonnes showed a growth of 32% in response to a robust market demand. Substantial growth was achieved in sales of products like structurals (10%), wheels & axles (7%), steels to Railways (5%) and wire rods (24%). For the first time, SAIL developed and supplied special steel as an import substitute for building naval warships. Rails of 260-metre length were also produced for the first time for the Indian Railways.
During 2005-06, the company continued with its thrust on maintaining its virtual debt-free status.
The companyÔÇÖs labour productivity rose by 11% to the level of 150 tonnes per man per year during 2005-06.
Reflecting on the achievements, SAIL Chairman Mr V.S. Jain said: ÔÇ£The record-breaking physical performance has generated confidence amongst the SAIL collective of reaching the growth targets that have been set for 2011-12 in a systematic manner.ÔÇØ