Our endeavour is to enhance Stakeholders' Value - Uflex Ltd.

DIRECTOR’S REPORT
ANNEXURE ‘B’ TO DIRECTORS’ REPORT
Information regarding Conservation of Energy, Technology
Absorption and Foreign Exchange Earnings and Outgo pursuant
to Companies (Disclosure of Particulars in the Report of Board
of Directors) Rules, 1988 and forming part of Directors’ Report.
A. CONSERVATION OF ENERGY
Concerns over the negative environmental impacts of
ineffi cient uses of energy are growing, both globally and
regionally. Such concerns require greater national eff orts and
greater international cooperation to promote energy effi ciency
and energy conservation. Local air pollution, emissions of
greenhouse gases, and acidifi cation of soil and water can all be
reduced if energy and resource conservation concepts are more
widely applied. Such concerns require greater national eff orts
and greater international cooperation to promote energy
effi ciency and energy conservation. More effi cient energy use
can increase productivity and economic competitiveness as
well as lower greenhouse gas emissions per unit of output.
India’s overall consumption of energy is very low, but compared
to its gross domestic production its relative consumption is
very high. The cost of commercial energy is also high compared
to that in most other countries. The industrial sector consumes
about 50% of the total commercial energy produced. There is a
growing need to bring about improvement in the effi ciency of
energy use in the industrial sector.
Our Company’s development plans put lot of emphasis on
energy conservation & enhancement of machinery effi ciency.
In general the conservation of energy in any form is very
important for the existence of any industry today. Accordingly,
we have undertaken various signifi cant steps to reduce the
power generation cost as well as power consumption.
(a) Energy conservation measures taken
The below mentioned are some of the steps which have
been undertaken during 2008-09.
1) Decrease in specifi c fuel consumption of Power
House
We have taken a number of steps to improve upon
the effi ciency of the diesel engine. This has resulted
in a saving of about 10 gms of fuel per KWH, which
in turn translates into a saving of 1200 MT of HFO on
per annum basis.
2) Vapour Absorption Machine
We have successfully commissioned 370 TR VAM
connected on the jacket water system of Wartsila HFO
DG No # 3. The Vapour Absorption Machine is being
used for the air conditioning & the process cooling
purposes. This installation has helped us in saving
17.0 lacs of units on yearly basis.
3) The effi ciency of various chilling plants have been
improved by running the on chillers on full load and
stopping smaller chillers.
UFLEX LIMITED
4) Printing machines operated with cooling tower water
replacing chilled water in winter season.
5) Creation of awareness amongst all workers/staff /
members to take the maximum use of natural lights
and sensible use of the electrical appliances like fans,
air conditioners etc.
(b) Future Proposals for Energy Conservation
The Company will take necessary measures as may be
required from time to time for conservation of energy.
Such measures are as follows:
1) Installation of Power savers for supplying low voltage
lighting system to plant. This will result in a savings of
around 7.5% in our current energy bill under the head
of lighting, i.e. approx. 210000 units of power on per
annum basis.
2) Installation of Waste heat Recovery Unit on the
exhaust side of 7.7 MW DG set. This will generate
approx. 3.5 tons/hr of steam. This steam could be
used for heating the fuel or in a vapour absorption
machine to generate chilled water for process cooling/
air conditioning purpose. This in turn will save about
30 lacs units of power on per annum basis.
3) Step towards Green Energy
Since we care for the society, we are planning to
change the fuel for the DG sets as well as for the
Thermic Fluid Heaters. We are working on a proposal
to change from existing FO based fuel to the gas based
fuel. The gas based fuel will eliminate the release of
gases high in Sulphur content into the atmosphere
(FO based fuel has high Sulphur content).
(c) Impact of measures at (a) & (b) above for reduction of
energy consumption
The above measures will result in energy saving and
consequent decrease in cost of production.
B. TECHNOLOGY ABSORPTION
The following eff orts are being made in technology
absorption:
Research & Development (R&D)
1. Specifi c areas in which R&D is carried out by the Company
The Company has carried out R&D in multiple products,
processes and technologies.
2. Benefi ts derived as a result of the above R&D
Products improvements in quality and quantity, conversion
cost reduction, import substitution, widening the product
range. The capability to develop new products boosts the
morale and the culture of the organization. Further, several
new products have been developed by the Company to
respond to the needs of its customers both in the domestic
and international markets, with concurrent commitment
to improve quality and productivity.
TWENTIETH ANNUAL REPORT 2008 - 2009
| 5 |
C O M P A N Y