Steel Authority of India (SAIL) would adopt several steps to increase operational efficiency and thereby save Rs 5,000 crore in cost over the next three years.
The state-run steel maker said in a statement after a ‘Strategic Confluence on Cost Control and Cost Competitiveness’ at its Management Training Institute in Ranchi.
As part of the move, the company would adopt input optimisation, improve operational efficiency, quickly stabilise newly-commissioned units, reducte overhead costs and raise employee productivity.
The company’s integrated steel plants and units have identified potential cost drivers and elaborated their strategy for cost optimisation through each of the areas.
The decline in the price of its finished products and depreciation of rupee offset the fall in the price of purchased inputs, the firm said.
In 2011-12, the firm spent Rs 42,541 crore and this remained almost same in the previous financial year. On the other side, gross sales fell to Rs 49,987 crore in 2012-13, against Rs 51,036 crore in 2011-12. The decline in sales is attributed to fall in consumption.
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