Singareni Collieries Company Ltd has registered a record 15 per cent growth in 2015-16, achieving a turnover of over 60 million tonnes as against 52 million tonnes last fiscal.

The 127-year-old coal mining company is set to achieve a turnover of over ₹14,000 crore this financial year, up from ₹12,000 crore. Significantly, the profit is set to double at over ₹1,000 crore this year.

The company has planned a capex of ₹4,000 crore for expansion and opening of new mines next fiscal.

In an interview with BusinessLine , N Sridhar, Chairman and Managing Director of Singareni Collieries, said, “The growth was possible due to workers and their commitment and the steadfast support extended by K Chandrasekhar Rao, Chief Minister of Telangana. We have registered the highest growth among all the coal companies in the country.” Excerpts:

What were the key drivers of this growth?

In 2015-16 we will create a number of new records in production, despatches and profits. Production has gone up from 52 million tonnes to 60 MT; turnover will be up from ₹12,000 crore last year to ₹14,000 crore, and profit will be up from ₹500 crore to over ₹1,000 crore. The growth of over 15 per cent is a big leap as against the 2-3 per cent we had achieved for several years. CIL’s growth is estimated to be about 9.2 per cent this year.

The despatches have gone up by 11 per cent as against a growth of 3-4 per cent last year. The number of rakes despatched was up 24 per cent at over 10,000.

How was the growth achieved despite not adding any new mines?

After Telangana was formed, the company charted out a new growth plan. The employees have shown their commitment and the State leadership has been supportive. In spite of not adding new mines, we managed to increase the output across mines. The Adriyala Longwall (mine), too, played a role in adding to the volumes by producing 2.2 MT.

The company now has 58,000 employees and added over 5,000 people in one of its biggest recruitment drives. All this will augur well.

What are the targets you have set for yourself ? Any new mines?

We had been growing at about 3 per cent and have achieved 15 per cent growth this year. We have set a target to grow at a sustained pace of over 10 per cent per annum. Next year we expect to produce 66 MT and achieve 85 MT by 2020.

We have decided to open 20 new mines and seven of them will be opened next fiscal. We also have the Naini coal block in Odisha and have started land acquisition and relief and rehabilitation work. It will take about three years to begin mining there.

What is the progress on the thermal power plant?

Work on the power plant is at an advanced stage. The first unit of 600 MW of 2x600 (1200 MW) has been synchronised earlier this month and the second one will be completed in April. Commercial operations will begin in May. This project will be able to supply 25 million units per annum and bridge the demand-supply gap in Telangana. We will take up expansion thereafter. This will also contribute to revenues of over ₹2,500 crore next fiscal.

What is the status of plans to acquire mines overseas?

We have received 13 applications (offering mines). But we will tread cautiously as coal prices globally continue to be volatile.

What is the capex for next fiscal and where would you deploy it?

We have planned a capex of ₹4,000 crore, up from ₹3,000 crore this year. This will be mainly deployed in opening new mines and (purchasing) equipment required to meet expansion. We also plan to implement the outsourced model for some of the mines, particularly Longwall. Some companies have already expressed interest.

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