PSF DMT QPR. AUG.04

THE PRESENTATION

ON

SATUS OF THE PSF PLANT

OPERATION

DATED : Jul’2004

CAPACITY UTILIZATION PSF

23.4

59.8467.84

86.7294.5

99.993.4

0

20

40

60

80

100

120

Dec'03 Jan'04 Feb'04 Mar' 04 Apr' 04 May'04 Jun'04

% U

TIL

IZA

TIO

N

The Plant has achieved a capacity utilization of 99.96% during the month of May, which is the highest ever achieved since commissioning.

A. SUMMARY OF PSF PRODUCTION

Jan’04 Feb’04 Mar 04 Apr’04 May’04 Jun,04

Production (MT)

1903.10 1948.96 2669.43 2909.07 3179.40 2874.98

Capacity utilization %

61.82 63.31 86.72 94.51 99.96 93.40

SPECIFIC CONSUMPTION OF MAJOR RAWMATERIALS & UTILITIES - PSF

ITEM UNIT STAND. ACTUAL ACHIEVED

Jan’04 Feb’04 Mar’04 Apr’04 May’04 Jun’04

DMT MT/MT 1.02 1.052 1.064 1.076 1.053 1.032 1.029

MEG MT/MT 0.35 0.398 0.398 0.355 0.365 0.359 0.362

POWER MWH/MT 0.800 1.005 0.953 0.82 0.746 0.734 0.818

FUEL MT/MT 0.121 0.129 0.116 0.078 0.064 0.065 0.051

STEAM MT/MT 3.00 5.858 5.54 4.82 4.639 4.544 4.798

WASTE % 3 5.08 7 6.99 5.21 4.52 4.46

The specific consumption of Raw materials utilities and wastes are showing an improving trend and approaching the target value.

SPECIFIC CONSUMPTION OF MAJOR RAW MATERIALS & UTILITIES - DMT

ITEM UNIT STAND. ACTUAL ACHIEVED

Jan’04 Feb’04 Mar’04 Apr’04 May’04 Jun’04

P-Xylene MT 0.651 0.66 0.64 0.66 0.65 0.63 0.65

Methanol MT 0.417 0.46 0.42 0.44 0.42 0.42 0.44

Cobalt Acetate

KG 1.18 1.06 1.32 1.28 1.08 0.12 0.26

Manganese Acetate

KG 0.113 0.1 0.12 0.13 0.11 0.01 0.03

Acetic acid KG 0.235 0.18 0.19 0.15 0.09 0.01 0.04

Steam MT 4.5 5.95 5.80 4.73 3.81 3.58 3.17

The specific consumption of Raw materials utilities and wastes are showing an improving trend and approaching the target value.

REASONS FOR DEVIALTION IN SPECIFIC CONSUMPTION OF RAW MATERIALS & UTILITIES -

PSF

• Startup of plant after prolonged shut-down.• Number of unscheduled shutdown due to failure

of critical equipments.• Failure of Dow vaporizers.• Failure of Chiller compressors.• Failure of spinning puller roll drives.• Interruption in plant air supply.• Total complex power failure.• Local power failures.• DMT flow loss due to Submerging of offsite process lines in

heavy rains.• High level of water content in fuel oil.

• High level of waste generation.• Poor thermal insulation.

REASONS FOR DEVIATION IN SPECIFIC CONSUMPTION OF RAW MATERIALS - DMT

• Startup of plant after prolonged shut-down.

• Built up of in plant inventory as plant started from empty conditions.

• Fluctuation in throughput due to ullage constraints, short supply of raw material & equipment breakdowns.

• AC (activated carbon) unit leakages and bed displacement leading to poorer recovery of P-Xylene.

• Waste Heat Boiler tube failure.

• Poor condition of steam traps and line insulation.

• High rate of stream recycle, thereby lowering conversions in Oxidation reactions.

B. SUMMARY OF SALES & CONTRIBUTION

Jan 04 Feb 04 Mar 04 Apr’04 May’04 Jun,04

Sales (MT)

162.614 1062.165 2316.92 2792 3576 3560.550

Contribn. (Rs/MT)

(-) 5681 (-) 4799 (-) 2110 (-) 4461 (-) 2969 324

Contribn.Rs. Crores

(-) 0.09 (-) 0.51 (-) 0.49 (-) 1.26 (-) 1.06 0.12

REASONS IDENTIFIED FOR NEGATIVE CONTRIBUTION

• High raw material price vis-à-vis finished fibre price

• Higher transfer price of DMT.• Higher specific consumption of raw materials &

utilities • DMT, EG – high level of waste.• Steam – poor insulation, submerging/water ingress in the

insulations.

• Low first grade quality production• Unscheduled interruptions leading to production

loss & high level of waste generation.

ACTIONS TAKEN FOR IMPROVING CONTRIBUTION.

DMT PLANT:• Steam trap replacement (246 Nos) based on a survey by Forbes Marshall.• DMT - Waste heat boiler repaired and put in line.• Stabilization of RMCR unit. Maximizing catalyst Cobalt recovery.• Process parameters optimized to reduce HBs recycle in C&C.• Reduction in steam consumption below standard conditions to minimize

conversion costs.• Maximizing recovery of organics from waste water streams, resulting in

60% reduction in BOD load.PSF PLANT:• Proposed replacement of mineral wool insulation with calcium silicate

block insulation.• Draw machine crimpers have been changed to 6.5 inch for improved

productivity.• Damaged insulation of spinning machine replaced.• Reduction in waste generation.

WASTE % OF PSF

5.08

7 6.99

5.214.5 4.46

0

2

4

6

8

J an'04 Feb'04 Mar' 04 Apr' 04 May'04 J un'04

% W

AS

TE

ACTION FOR SUSTAINING FULL THROUGHPUT OPERATION/ IMPROVING CONTRIBUTION

• Chiller compressor needs replacement.• 1st phase 950 TR one no.- by Feb’05. Investment – 1.5crores.• 2nd phase 450TR – two nos.– by 2005. Investment – 2 crores.

• Tubes: 85% in Vappouriser - I and 15% in vapouriser – II to be replaced

• Above can be taken up after vapouriser – III is made ready (total tube replacement) – expected investment 0.36 crores.

• Burners & control system up-gradation in all vaporizer – expected investment 1.9 crores.

• Spinning puller roll & metering pump drive replacement. – expected investment 1.0 crores.

ACTION FOR SUSTAINING FULL THROUGHPUT OPERATION/ IMPROVING CONTRIBUTION

• Control system up gradation of DM#1, 2 & tow pack station.

• Being planned new. Expected investment – 0.5 crores.

• DMT & EG auto feed control system based on out put.

• Being planned new. Expected investment – 0.5 crores.

• Control system up-gradation in the baler area.• Being planned new. Expected investment – 0.4 crores.

• Additional cutters.• Being planned new. Expected investment – 0.7

ACTION FOR SUSTAINING FULL THROUGHPUT OPERATION/ IMPROVING CONTRIBUTION-DMT

• De-bottlenecking of DMT plant

• Insulation replacement.

FUTURE TREND

• PSF price showing an improving trend.

• More benefit to customer on buying BRPL fibre as compared to other manufacturers due to changed duty structure on spun yarn.

• Reduction of AGST & CST to 1% (effective 1.1%) by Assam Govt. will bring in additional benefits.

• Sales logistics being reframed to improve realization.

• Expected positive contribution for the month of August’04 is of the order of 1500/MT (1.65 crores).

PRICE TREND

63000 65000 65000 6550063000 63000 64000 65000

68500

30926 30700.8934090 34875 36878.19 36720.89 37424.77 37425 37425

41331 4101844882 46144 47211 46798 47145 49331

52313

0

10000

20000

30000

40000

50000

60000

70000

80000

3-Dec

JAN'04

FEB'04

MAR'04

Apr' 0

4

May

'04

Jun'0

4

23-Ju

l

Aug'04

Rs

PE

R M

T

PSFP-XYLENEMEG

OTHER BENEFITS

• Additional benefits accurse to the company by way of improved CPP effiency.

• Approx. 2.5 crores per annum gain (not taken in contribution calculation)

• Utilization of idle manpower of the company.• Improved work environment.• Large scale indirect employment generation due to

increased activities like bagging, loading, dispatching etc.

PSF NEW PROJECT STATUS

• Limited tender floated to 9 parties on 11th March’04.

• Offer received only from Chemtex/Invista on 19th April’04

• Offer opened on 4th May’04.• Discussion held with the party on 8th July’04.• Propritory/non propritory & service scopes were

redefined.• Revised price offer expected by 1st week of

August’04.• Project viability will be re-casted after receipt of

revised offer for taking a final view on the project.

Target - 95 %

FIRST GRADE QUALITY PRODUCTION

66

75.684.4

90.0 92.56 89.9

0

10

20

30

40

50

60

70

80

90

100

J an'04 Feb'04 Mar'04 Apr' 04 May'04 J un'04

% 1

ST

GR

AD

E

CONSUMPTION TREND FOR DMT

1.052

1.064

1.079

1.053

1.032 1.029

11.011.021.031.04

1.051.061.071.081.09

J an'04 Feb'04 Mar' 04 Apr' 04 May'04 J un'04

PE

R M

T O

F P

SF

MEG CONSUMPTION TREND

0.398

0.355

0.3650.359 0.362 0.364

0.330.34

0.350.36

0.370.38

0.390.4

0.41

J an'04 Feb'04 Mar' 04 Apr' 04 May'04 J un'04

PE

R M

T O

F P

SF

POWER CONSUMPTION TREND

1.005 0.9530.82

0.746 0.7340.818

0

0.2

0.4

0.6

0.8

1

1.2

J an'04 Feb'04 Mar' 04 Apr' 04 May'04 J un'04

MW

H P

ER

MT

STEAM CONSUMPTION TREND

5.8585.54

4.82 4.639 4.544 4.334

0

1

2

3

4

5

6

7

J an'04 Feb'04 Mar' 04 Apr' 04 May'04 J un'04

PE

R M

T O

F P

SF