Download the Annual Report 2012-13. - kiocl limited

3.0 SEGMENT-WISE PERFORMANCE3.1 PelletsDuring the year under review, your Company has set an annual target of 2.500 million tons of SPellet production inthe MOU under “Good” category. As against the same, the actual production was 1.265 million tons, which is 51%achievement of the target. The shortfall is on account of unprecedented decline in demand and price for Pellets coupledwith non availability of adequate quantity of Iron Ore fines after blanket ban on mining in the State of Karnataka imposedby Hon’ble Supreme Court. During the year the Pellet Plant was operated only for 144 days.Union Steel Minister Shri Beni Prasad Verma inaugurating the KIOCL Pavilion at the IndiaInternational Trade Fair, Pragati Maidan, New Delhi on 14.11.2012.3.2 Pig Iron and AuxiliaryThe operation of Blast Furnace Unit continued to remain suspended since 05.08.2009 owing to generation of negativecontribution. In an effort to revive the operation at BFU, your Company made an internal assessment taking intoconsideration the input cost vis-a-vis selling price of the finished products. Since the economics are unfavourable it wasdecided to keep the operation suspended.3.3 The production target vis-a-vis actual achievement during the last three years is given below:-PP: Pellet plant, PI: Pig IronYear MOU target Actual Production(Qty. In million tons)Capacity utilisation of installedcapacity in %PP PI PP PI PP PI2012-13 2.500 - 1.265 - 36 -2011-12 3.000 - 1.710 - 49 -2010-11 2.780 0.100 2.124 - 61 -(Installed capacity of Pellet Plant is 3.500 million tons and Pig Iron is 0.216 million tonnes).37th Annual Report 2012 - 1319 KIOCL