Annual Report FY 2009-10 - Welspun

01 Specific areas in which R&D is carried out by theCompanyFORM B(See Rule 2)Form for disclosure of particulars with respect to absorption.Research and Development (R&D)C rp LtdBharuch Pipe Mill:During the year the company carried out R&D activities in the area of productdevelopment including developing API X-70 & X -80 sour service and it’s higherwall thick sour service pipe.Anjar Pipe/Plate Mill:During the year, the Company carried out R&D activities in the area of:(i) Designing of lean chemistry slab, for IS 2062 Grade rolling by controllingmill process parameters.(ii) Executed API-X-70 grade order in 18.31X3261 mm from lean chemistry.(iii) Introduced coil as additional product range.02 Benefits derived as a result of the above R&D.03 Future plan of action04Expenditure on R&D(a) Capital(b) Recurring(c) Total(d) Total R&D expenditure as a percentage of totalturnovers.Bharuch & Anjar Pipe Mill:The R&D activity resulted in increase product range available.Anjar Plate Mill:The R&D activity resulted in reducing the raw material cost .Bharuch & Anjar Pipe Mill:The Company has an ongoing program for carrying out research anddevelopment which helps the Company to improve production processes andto innovate higher grade products. The Company seeks to enhance itsposition as a leading pipe manufacturing company by further developing andimproving its products for oil, gas and other applications with a specialemphasis on LSAW and HSAW pipes and pipe coating.Anjar Plate Mill:The Company has an ongoing program for carrying out research anddevelopment which helps the Company to improve production processes andto innovate higher grade products.Development for grade API –X-80 and sour gas application.Rs. NIL mnRs. 3.12 mnRs. 3.12 mn0.004%Technology absorption, adaptation and innovation.01 Efforts, in brief, made towards technology absorption, -adaptation and innovation.02 Benefits derived as a result of the above efforts, etc.Product improvement, cost reduction, productdevelopment, import substitution, etc.03 In case of imported technology (imported during thelast 5 years reckoned from the beginning of thefinancial year), following information may be furnished:--(a)Technology imported(b) Year of import(c) Has technology been fully absorbed?(d) If not fully absorbed, areas where this has nottaken place, reasons therefore and future plans ofaction.Foreign exchange earnings and outgo :Activities relating to exports;Initiatives taken to increase exports;Development of new Markets like Mexico; Australia, Czech Republic, Yemen etc.More then 20 Clients visited, audited and approved the mill for future jobsespecially clients approving the Plate & Coil mill Division. Names include TOTAL,SHELL, ADCO, KPO, NGC, Saudi Aramco (for Spiral Mill), Air Product, Acergy.Development of new export markets for products andservices and export plans;Total foreign exchange used and earned.Development of products for higher strength sour service requirements.Used : Rs. 27.10 bnEarned : Rs. 23.06 bn15