Strategic sourcing and value engineering in production have helped Bharat Heavy Electricals Ltd's (BHEL) boiler auxiliaries division at Ranipet near here to cut cost substantially and increase profit.
Bhel's Bhopal unit clocks 21% profit
'Between September - November 2009, the steel prices went down and we bought our annual requirement then. We sourced steel at Rs.26,000-Rs.28,000 per tonne. Our annual steel requirement is around 200,000 tonne. The current steel price ranges between Rs.36,000 - Rs.38,000 per tonne,' A. Chandrababu, the unit's general manager, told IANS Monday.
According to him, the inventory carrying cost is not high as the company enjoys 60 days credit period. Further, the interest cost is lower than the steel prices.
more at:
http://sify.com/finance/bhel-boiler-auxiliaries-division-cuts-cost-raises-profit-news-default-kefo4dagcja.html
Tuesday, April 6, 2010
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