The Hindu Business Line : Durgapur Steel set to clock Rs 100-cr profit

Though steel industry experts said that this was possible because of the ongoing bull run in the global steel sector, DSP management officials hold a different view. For them, high steel prices were just a catalyst in changing DSP's fortunes.

"Better communication among the workers and all grades of employees did the trick. Now everyone here is feeling proud of being a member of the DSP family. And with the net profit in the balance sheet, they will feel prouder," sources told Business Line.

DSP last registered a net profit of Rs 4.52 crore in 1981-82. At that time, manpower was around 35,000. Now it stands reduced to 17,000.

Turnover is expected to touch Rs 3,000 crore in 2003-04, from Rs 2,400 crore the previous year.

Saleable steel production of the plant recorded over 100 per cent capacity utilisation.

In 2003-04, DSP's crude steel production went up to 1.76 million tonnes from 1.71 million tonnes.

Similarly, hot metal production increased to 1.98 million tonnes from 1.94 million tonnes. Production of continuous casting plant operated at 30 per cent above the rated capacity to produce one million tonnes. The total saleable steel production was 1.61 million tonnes.

Exports went up from 1.19 lakh tonnes to 2.75 lakh tonnes. The exports were mainly to Nepal, Myanmar, the Philippines and East Asian countries.

"All this was possible because of proper communication, replacement of old machinery and overall technology upgradation. The plant has shifted to continuous cast route of steel production from the earlier ingot route and blooming mill," the sources said.

Meanwhile, fresh investments to the tune of Rs 200 crore are being made in DSP. One bloom caster, two ladle furnaces and one reheating furnace at the billet mill are being set up.

"Within one-and-a-half years, DSP will become a fully continuous casting unit. This will help the unit in reducing its per tonne production cost by approximately Rs 1,000," sources said.

The DSP management has also sought clearance from the SAIL board for the installation of a wire rod mill.

This is expected to help the plant in reducing its semis from the existing level of 50 per cent to 10-15 per cent.

DSP still enjoys a good market for semis because a number of re-rolling mills have come up in that region.