A STUDY ON FIXED ASSETS MANAGEMENT AT

Kesoram Cement

A Project report submitted to Jawaharlal Nehru Technological University, Hyderabad, for the award of degree

MASTER OF BUSINESS ADMINISTRATION

By

PRAVEEN IRRINKI

Reg. No. 10241E0017

Under the Guidance of

Prof. INDIRA MADAM

Department of Management Studies

Gokaraju Rangaraju Institute of Engineering & Technology

(Affiliated to Jawaharlal Technological University, Hyderabad)

Hyderabad

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2010-2012

CERTIFICATE

This is to certify that the project entitled A Study on Fixed Asset Management

has been submitted by Mr. PRAVEEN IRRINKI (Reg. No. 10241E0017) in partial

fulfillment of the requirements for the award of Master of Business Administration from

Jawaharlal Nehru Technological University, Hyderabad. The results embodied in the

project has not been submitted to any other University or Institution for the award of any

Degree or Diploma.

Smt. INDIRASri. KVS Raju

Internal GuideProfessor & HODAssociate ProfessorDepartment of Management Studies

Department of Management StudiesGRIETGRIET

Mr. S. Ravindra CharyProject Coordinator

Associate ProfessorDepartment of Management Studies

GRIET

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DECLARATION

I hereby declare that the project entitled A study on fixed asset management at

Kesoram Cement submitted in partial fulfillment of the requirements for award of the

degree of MBA at Gokaraju Rangaraju Institute of Engineering and Technology, affiliated to Jawaharlal Nehru Technological University, Hyderabad, is an authentic work and has not been submitted to any other University/Institute for award of any degree/diploma.

PRAVEEN IRRINKI

(10241E0017)

MBA, GRIET

HYDERABAD

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ACKNOWLEDGEMENT

Firstly I would like to express our immense gratitude towards our institution Gokaraju Rangaraju Institute of Engineering & Technology, which created a great platform to attain profound technical skills in the field of MBA, thereby fulfilling our most cherished goal.

I would thank all the finance department of Kesoram specially Mr. MURTHY ASST Manager Finance for guiding me and helping me in successful completion of the project

I am very much thankful to our Prof. INDIRA (Internal Guide) sir for extending his cooperation in doing this project.

I am also thankful to our project coordinator Prof. S. RAVINDRA CHARY for extending his cooperation in completion of Project..

I convey my thanks to my beloved parents and my faculty who helped me directly or indirectly in bringing this project successfully.

PRAVEEN IRRINKI (10241E0017)

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INDEX

S.No:CONTENTSPAGE NO.

CHAPTER-11-8

INTRODUCTION

Scope of the Study

Objectives of the Study

Methodology of the Study

Limitations of the Study

CHAPTER-29-28

INDUSTRY PROFILE

COMPANY PROFILE

CHAPTER-329-44

REVIEW OF LITERATURE

CHAPTER-445-56

DATA ANALYSIS AND INTERPRETATION

CHAPTER-557-62

FINDINGS

CONCLUSION

SUGGESTION

BIBLIOGRAPHY

CHAPTER-I

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INTRODUCTION

INTRODUCTION

Fixed Assets are the assets held with the intention of being used on continuous basis for the purpose of producing or providing goods or services and are not held for resale in the normal course of business.

E.g.: Land and Buildings, Plant and Machinery, Motor Vehicles, Furniture and Fixtures.

Valuation of fixed assets is important to have fair measure of profit or loss and financial position of the concern. Fixed assets are meant for use for many years. The value of these assets decreases with their use or with time or many other reasons. A portion of fixed assets are reduced by usage are converted into cash through charging depreciation. For correct measurement of income, proper measurement of depreciation is essential, as depreciation constitutes a Part of total cost of production.

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Financial transactions are recorded in the books, keeping in view the going concern aspect of the business unit. In going concern aspect it is assumed that the business unit has reasonable expectation of continuing the business for a profit for an indefinite period of time. This assumption provides much of the justification for recording fixed assets at original cost and depreciating them in a systematic manner without reference to their current realizable value.

It is useless to record the fixed assets in the balance sheet at their estimated realizable values if there is no immediate expectation of selling them. So, they are shown at their book value (i.e., Cost Depreciation) and not at current realizable value. The market value of the fixed assets may change with the passage of time, but for accounting purpose it continues to be shown in the books in historical cost.

The cost concept of accounting states that depreciation calculated on the basis of historical cost of old assets is usually lower than the amount calculated at current value/ replacement value. These results in more profits, which if distributed in full will lead to reduction in capital.

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FIXED ASSETS MANAGEMENT CYCLE

The fixed assets management cycle is the cycle of activities from the acquisition of the asset to the final disposition of the assets at the end of their useful life.

The cycle has 7 steps:

Acquisition: The cycle begins with the acquisition, purchase, gift or otherwise, of an asset and the determination that the asset is to be capitalized. To be capitalized the asset has to meet the agencys capitalization limit and have a useful life of one year or more.

Receiving: The asset is formally received and accepted by the agency. Receipt may be verified by entry into an automated purchasing system or by hard copy document. In the case of donated fixed assets, receipt can be verified by a letter to the donor.

Payment: Payment is made for the asset according to the terms of the purchase order or recognition of acceptance of a gift to the donor. The payment includes the acquisition cost, freight and all other costs to put the asset. Acquisition cost of donated fixed assets is determined by its fair market value.

Identification: the asset is identified as an asset, tagged or otherwise identified and entered into the fixed assets management inventory system. Assets are identified with a permanently attached identification tag, etching or by painting on the identification number.

Inventory: The longest step in the cycle. The asset is used over its useful life. Assets are inventoried and accounted for during this step until they are no longer needed. The agencys policies and procedures determine the inventory interval.

Excess: the asset is declared as excess to the users needs. The asset may be transferred to another user where it will continue to be used, accounted for and inventoried. Assets may be declared as excess more than once until the asset is no longer needed.

Surplus: the last step in the fixed assets management cycle. The asset is declared to be surplus property and to have no further value to the agency. The asset is disposed of by sale or discarding depending on the residual value. Sale can be by auction, sealed bid, spot sale, or through a sales store.

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FIXED ASSETS MANAGEMENT CYCLE

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NEED AND IMPORTANCE OF THE STUDY:

As fixed assets play an important role in companys objectives. These fixed are not convertible or not liquidable over a period of time. The owners funds and long term liabilities are invested in fixed assets.

If firms fixed assets are idle and not utilized properly it affects the long-term sustainability of the firm, which may affect liquidity and solvency and profitability positions of the company.

Fixed assets are the assets which cannot be liquidated into cash within one year. The huge amounts of funds of the company are invested in these assets. Every year company invests an additional fund in these assets directly or indirectly. The survival and other objectives of the company depend on operating performance of management i.e. effective utilization of these assets.

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OBJECTIVES OF THE STUDY:

The following are the objectives of the study

To assess the amount of capital expenditure made by the company during the period of study 2007-08 to2010-11.

The study is conducted to evaluate the fixed assets turnover of KESORAM.

The study is conducted to evaluate whether fixed assets are giving adequate returns to the company.

To evaluate that if fixed assets are liquidated, what proportion of it will contribute for the payment of owners fund and long-term obligations.

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METHODOLOGY:

The data used for the analysis and interpretation is from annual reports of the company i.e., secondary forms of data. Ratio analysis is used for calculation purpose.

The project is presented using tables, graphs and with their interpretations. No survey is undertaken or observation study is conducted by evaluating fixed assets performance of the company.

SOURCES OF DATA:

The data needed for this project is collected from the following sources: 1.The data is adopted purely from secondary sources.

2.The theoretical contents are gathered purely from eminent text books and references. 3.The financial data and information is gathered from annual reports of the company.

SCOPE OF THE STUDY:

The project is covered on fixed assets of KESORAM. Drawn from annual reports of the company. The subject matter is limited to fixed assets, its analysis and its performance but not to any other areas of accounting corporate, marketing and financial matters.

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LIMITATIONS:

The following are the limitations for the study

1. The study is limited into the date and information provided by the KESORAM and its annual reports.

2. The report may not provide exact fixed assets status and position of KESORAM; it may be varying from time to time and situation to situation.

3. This report is not helpful in investing in KESORAM

4. Either through disinvestments or capital market.

5. The accounting procedure and other accounting principles are limited by the changes made by the company, may vary fixed assets performance.

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CHAPTER-II

INDUSTRY PROFILE

&

COMPANY PROFILE

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INDUSTRY PROFILE

In the most general sense of the word, a cement is a binder, a substance which sets and hardens independently, and can bind other materials together. The word "cement" traces to the Romans, who used the term "opus caementicium" to describe masonry which resembled concrete and was made from crushed rock with burnt lime as binder. The volcanic ash and pulverized brick additives which were added to the burnt lime to obtain a hydraulic binder were later referred to as cementum, cimentum, cment and cement. Cements used in construction are characterized as hydraulic or non-hydraulic.

The most important use of cement is the production of mortar and concretethe bonding of natural or artificial aggregates to form a strong building material which is durable in the face of normal environmental effects.

Concrete should not be confused with cement because the term cement refers only to the dry powder substance used to bind the aggregate materials of concrete. Upon the addition of water and/or additives the cement mixture is referred to as concrete, especially if aggregates have been added.

It is uncertain where it was first discovered that a combination of hydrated non-hydraulic lime and a pozzolan produces a hydraulic mixture (see also: Pozzolanic reaction), but concrete made from such mixtures was first used on a large scale by Roman engineers.They used both natural pozzolans (trass or pumice) and artificial pozzolans (ground brick or pottery) in these concretes. Many excellent examples of structures made from these concretes are still standing, notably the huge monolithic dome of the Pantheon in Rome and the massive Baths of Caracalla. The vast system of Roman aqueducts also made extensive use of hydraulic cement. The use of structural concrete disappeared in medieval Europe, although weak pozzolanic concretes continued to be used as a core fill in stone walls and columns.

Modern cement

Modern hydraulic cements began to be developed from the start of the Industrial Revolution (around 1800), driven by three main needs:

Hydraulic renders for finishing brick buildings in wet climates

Hydraulic mortars for masonry construction of harbor works etc, in contact with sea water. Development of strong concretes.

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In Britain particularly, good quality building stone became ever more expensive during a period of rapid growth, and it became a common practice to construct prestige buildings from the new industrial bricks, and to finish them with a stucco to imitate stone. Hydraulic limes were favored for this, but the need for a fast set time encouraged the development of new cements. Most famous was Parker's "Roman cement." This was developed by James Parker in the 1780s, and finally patented in 1796. It was, in fact, nothing like any material used by the Romans, but was a "Natural cement" made by burning septaria - nodules that are found in certain clay deposits, and that contain both clay minerals and calcium carbonate. The burnt nodules were ground to a fine powder. This product, made into a mortar with sand, set in 515 minutes. The success of "Roman Cement" led other manufacturers to develop rival products by burning artificial mixtures of clay and chalk.

John Smeaton made an important contribution to the development of cements when he was planning the construction of the third Eddystone Lighthouse (1755-9) in the English Channel. He needed a hydraulic mortar that would set and develop some strength in the twelve hour period between successive high tides. He performed an exhaustive market research on the available hydraulic limes, visiting their production sites, and noted that the "hydraulicity" of the lime was directly related to the clay content of the limestone from which it was made. Smeaton was a civil engineer by profession, and took the idea no further. Apparently unaware of Smeaton's work, the same principle was identified by Louis Vicat in the first decade of the nineteenth century. Vicat went on to devise a method of combining chalk and clay into an intimate mixture, and, burning this, produced an "artificial cement" in 1817. James Frost,orking in Britain, produced what he called "British cement" in a similar manner around the same time, but did not obtain a patent until 1822. In 1824, Joseph Aspdin patented a similar material, which he called Portland cement, because the render made from it was in color similar to the prestigious Portland stone.

All the above products could not compete with lime/pozzolan concretes because of fast-setting (giving insufficient time for placement) and low early strengths (requiring a delay of many weeks before formwork could be removed). Hydraulic limes, "natural" cements and "artificial" cements all rely upon their belite content for strength development. Belite develops strength slowly. Because they were burned at temperatures below 1250 C, they contained no alite, which is responsible for early strength in modern cements. The first cement to consistently contain alite was made by Joseph Aspdin's son William in the early 1840s. This was what we call today

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"modern" Portland cement. Because of the air of mystery with which William Aspdin surrounded his product, others (e.g. Vicat and I C Johnson) have claimed precedence in this invention, but recent analysis of both his concrete and raw cement have shown that William Aspdin's product made at Northfleet, Kent was a true alite-based cement. However, Aspdin's methods were "rule-of-thumb": Vicat is responsible for establishing the chemical basis of these cements, and Johnson established the importance of sintering the mix in the kiln.

William Aspdin's innovation was counter-intuitive for manufacturers of "artificial cements", because they required more lime in the mix (a problem for his father), because they required a much higher kiln temperature (and therefore more fuel) and because the resulting clinker was very hard and rapidly wore down the millstones which were the only available grinding technology of the time. Manufacturing costs were therefore considerably higher, but the product set reasonably slowly and developed strength quickly, thus opening up a market for use in concrete. The use of concrete in construction grew rapidly from 1850 onwards, and was soon the dominant use for cements. Thus Portland cement began its predominant role. it is made from water and sand

Types of modern cement Portland cement

Cement is made by heating limestone (calcium carbonate), with small quantities of other materials (such as clay) to 1450C in a kiln, in a process known as calcination, whereby a molecule of carbon dioxide is liberated from the calcium carbonate to form calcium oxide, or lime, which is then blended with the other materials that have been included in the mix . The resulting hard substance, called 'clinker', is then ground with a small amount of gypsum into a powder to make 'Ordinary Portland Cement', the most commonly used type of cement (often referred to as OPC).

Portland cement is a basic ingredient of concrete, mortar and most non-speciality grout. The most common use for Portland cement is in the production of concrete. Concrete is a composite material consisting of aggregate (gravel and sand), cement, and water. As a construction material, concrete can be cast in almost any shape desired, and once hardened, can become a structural (load bearing) element. Portland cement may be gray or white.

Portland cement blends

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These are often available as inter-ground mixtures from cement manufacturers, but similar formulations are often also mixed from the ground components at the concrete mixing plant.

Portland blastfurnace cement contains up to 70% ground granulated blast furnace slag, with the rest Portland clinker and a little gypsum. All compositions produce high ultimate strength, but as slag content is increased, early strength is reduced, while sulfate resistance increases and heat evolution diminishes. Used as an economic alternative to Portland sulfate-resisting and low-heat cements.

Portland flyash cement contains up to 30% fly ash. The fly ash is pozzolanic, so that ultimate strength is maintained. Because fly ash addition allows a lower concrete water content, early strength can also be maintained. Where good quality cheap fly ash is available, this can be an economic alternative to ordinary Portland cement.

Portland pozzolan cement includes fly ash cement, since fly ash is a pozzolan, but also includes cements made from other natural or artificial pozzolans. In countries where volcanic ashes are available (e.g. Italy, Chile, Mexico, the Philippines) these cements are often the most common form in use.

Portland silica fume cement. Addition of silica fume can yield exceptionally high strengths, and cements containing 5-20% silica fume are occasionally produced. However, silica fume is more usually added to Portland cement at the concrete mixer.

Masonry cements are used for preparing bricklaying mortars and stuccos, and must not be used in concrete. They are usually complex proprietary formulations containing Portland clinker and a number of other ingredients that may include limestone, hydrated lime, air entrainers, retarders, waterproofers and coloring agents. They are formulated to yield workable mortars that allow rapid and consistent masonry work. Subtle variations of Masonry cement in the US are Plastic Cements and Stucco Cements. These are designed to produce controlled bond with masonry blocks.

Expansive cements contain, in addition to Portland clinker, expansive clinkers (usually sulfoaluminate clinkers), and are designed to offset the effects of drying shrinkage that is normally encountered with hydraulic cements. This allows large floor slabs (up to 60 m square) to be prepared without contraction joints.

White blended cements may be made using white clinker and white supplementary materials such as high-purity metakaolin.

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Colored cements are used for decorative purposes. In some standards, the addition of pigments to produce "colored Portland cement" is allowed. In other standards (e.g. ASTM), pigments are not allowed constituents of Portland cement, and colored cements are sold as "blended hydraulic cements".

Very finely ground cements are made from mixtures of cement with sand or with slag or other pozzolan type minerals which are extremely finely ground together. Such cements can have the same physical characteristics as normal cement but with 50% less cement particularly due to their increased surface area for the chemical reaction. Even with intensive grinding they can use up to 50% less energy to fabricate than ordinary Portland cements.

Non-Portland hydraulic cements

Pozzolan-lime cements. Mixtures of ground pozzolan and lime are the cements used by the Romans, and are to be found in Roman structures still standing (e.g. the Pantheon in Rome). They develop strength slowly, but their ultimate strength can be very high. The hydration products that produce strength are essentially the same as those produced by Portland cement.

Slag-lime cements. Ground granulated blast furnace slag is not hydraulic on its own, but is "activated" by addition of alkalis, most economically using lime. They are similar to pozzolan lime cements in their properties. Only granulated slag (i.e. water-quenched, glassy slag) is effective as a cement component.

Supersulfated cements. These contain about 80% ground granulated blast furnace slag, 15% gypsum or anhydrite and a little Portland clinker or lime as an activator. They produce strength by formation of ettringite, with strength growth similar to a slow Portland cement. They exhibit good resistance to aggressive agents, including sulfate.

Calcium aluminate cements are hydraulic cements made primarily from limestone and bauxite. The active ingredients are monocalcium aluminate CaAl2O4 (CaO Al2O3 or CA in Cement chemist notation, CCN) and mayenite Ca12Al14O33 (12 CaO 7 Al2O3 , or C12A7 in CCN). Strength forms by hydration to calcium aluminate hydrates. They are well-adapted for use in refractory (high-temperature resistant) concretes, e.g. for furnace linings.

Calcium sulfoaluminate cements are made from clinkers that include ye'elimite (Ca4(AlO2)6SO4 or C4A3 in Cement chemist's notation) as a primary phase. They are used in expansive cements, in ultra-high early strength cements, and in "low-energy" cements. Hydration produces ettringite, and specialized physical properties (such as expansion or rapid reaction) are

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obtained by adjustment of the availability of calcium and sulfate ions. Their use as a low-energy alternative to Portland cement has been pioneered in China, where several million tonnes per year are produced. Energy requirements are lower because of the lower kiln temperatures required for reaction, and the lower amount of limestone (which must be endothermically decarbonated) in the mix. In addition, the lower limestone content and lower fuel consumption leads to a CO2 emission around half that associated with Portland clinker. However, SO2 emissions are usually significantly higher.

"Natural" Cements correspond to certain cements of the pre-Portland era, produced by burning argillaceous limestones at moderate temperatures. The level of clay components in the limestone (around 30-35%) is such that large amounts of belite (the low-early strength, high-late strength mineral in Portland cement) are formed without the formation of excessive amounts of free lime. As with any natural material, such cements have highly variable properties.

Geopolymer cements are made from mixtures of water-soluble alkali metal silicates and aluminosilicate mineral powders such as fly ash and metakaolin.

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COMPANY PROFILE

Kesoram Cement Industry is one of the leading manufactures of cement in India. It is a day process cement Plant. The plant capacity is 8.26 lakh tones per annum It is located at Basanthnagar in Karimnagar district of Andhra Pradesh. Basanthnagar is 8 km away from the Ramagundram Railway station, linking Madras to New Delhi. The Chairman of the Company is syt. B.K.Birla,

HISTORY:

The first unit at Basanthnagar with a capacity of 2.1 lakh tones per annum incorporating humble suspension preheated system was commissioner during the year 1969. The second unit was setup in year 1971 with a capacity of 2.1 lakh tones per annum went on stream in the year 1978. The coal for this company is being supplied from Singereni Colleries and the power is obtained from APSEB. The power demand for the factory is about 21 MW. Kesoram has got 2 DG sets of 4 MW each installed in the year 1987.

Kesoram Cement has setup a 15 KW captor power plant to facilitate for uninterrupted power supply for manufacturing of cement at 24th august 1997 per hour 12 mw, actual power is 15 mw.

The Company was incorporated on 18th October, 1919 under the Indian Companies Act, 1913, in the name and style of Kesoram Cotton Mills Ltd. It had a Textile Mill at 42, Garden Reach Road, Calcutta 700 024. The name of the Company was changed to Kesoram Industries & Cotton Mills Ltd. on 30th

August, 1961 and the same was further changed to Kesoram Industries Limited on 9th July, 1986. The said Textile Mill at Garden Reach Road was eventually demerged into a separate company.

The First Plant for manufacturing of rayon yarn was established at Tribeni, District Hooghly, West Bengal and the same was commissioned in December, 1959 and the second plant was commissioned in the year 1962 enabling it to manufacture 4,635 metric tons per annum (mtpa) of rayon yarn. This Unit has 6,500 metric tons per annum (mtpa) capacity as on 31.3.2009.

The plant for manufacturing of transparent paper was also set up at the same location at Tribeni,

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District Hooghly, West Bengal, in June, 1961. It has the annual capacity to manufacture 3,600

metrictonsperannum(mtpa)oftransparentPaper.

The Company diversifiedinto manufacturingof castiron spunpipes and pipefittings at

Bansberia, District Hooghly, West Bengal, with a production capacity of 45,000 metric tons per annum (mtpa) of cast iron spun pipes and pipe fittings in December, 1964.

The Company subsequently diversified into the manufacturing of Cement and in 1969 established its first cement plant under the name 'Kesoram Cement' at Basantnagar, Dist. Karimnagar (Andhra Pradesh) and to take advantage of favourable market conditions, in 1986 another cement plant, known as 'Vasavadatta Cement', was commissioned by it at Sedam, Dist.

Gulbarga (Karnataka). The cement manufacturing capacities at both the plants were augmented from time to time according to the market conditions and as on 31.3.2009 Kesoram Cement and Vasavadatta Cement have annual cement manufacturing capacities of 1.5 million metric tons and

4.1millionmetrictonsrespectively.

The Company in March 1992, commissioned a plant at Balasore known as Birla Tyres in Orissa, for manufacturing of 10 lac MT p.a. automotive tyres and tubes in the first phase in collaboration with Pirelli Ltd., U.K., a subsidiary company of the world famous Pirelli Group of Italy - a pioneer in production and development of automotive tyres in the world.

The capacity at the said plant was further augmented during the year by 19 MT per day aggregating to 271 MT per day production facility. The Greenfield Project of 257 MT per day capacity in the State of Uttarakhand with a capex of about Rs.760 crores commenced the commercial production in phases during the financial year 2008-09.The Company as on 31.3.2009 had the manufacturing capacities of 3.71 million tyres, 2.95 million tubes and 1.53 million flaps per annum in the Plants including at Uttarakhand Plant.

It has small manufacturing capacities of various Chemicals at Kharda in the State of West Bengal also. It has the annual manufacturing capacities of 12,410 mtpa of Caustic Soda Lye,

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5,045 mtpa of Liquid Chlorine, 6,205 mtpa of Sodium Hypochlorite, 8,200 mtpa of Hydrochloric Acid, 3,200 mtpa of Ferric Alum, 18,700 mtpa of Sulphuric Acid and 1,620,000 m3pa of purified Hydrogen Gas.

The Company is a well-diversified entity in the fields of Cement, Tyre, Rayon Yarn, Transparent Paper, Spun Pipes and Heavy Chemicals with two core business segments i.e. Cement and Tyres. In Spun Pipes & Foundries, a unit of the Company, work suspended from 2nd May, 2008 still commences till further notice. The Company as of now is listed on three major Stock Exchanges in India i.e. Bombay Stock Exchange Ltd., Mumbai, Calcutta Stock Exchange Association Ltd., Kolkata and National Stock Exchange of India Ltd., Mumbai and at the Societe de la Bourse de Luxembourg, Luxembourg.

A further expansion upto 1.65 million tons of cement per annum in Vasavadatta Cement at Sedam in Karnataka as unit IV at the same site is in progress, with a 17.5 MW Captive Power Plant, involving a capital expenditure of about Rs. 783.50 crores (including the cost of Captive Power Plant).

The commercial production of cement in the aforesaid unit IV has commenced in June 2009. The work for the further expansion in the Tyres Section at Uttarakhand for radial tyres with 100 MT per day capacity and bias tyres with 125 MT per day capacity involving an estimated aggregate capital outlay of about Rs. 840 crores is under progress. The Board has further approved a Motor Cycle Tyre Project of 70 MT per day capacity at the same site involving a capital outlay of Rs.190 crore. The civil construction of both the Projects is in full swing. The commercial production in both the Projects is likely to start by December 2009/ January 2010.

Birla Supreme in popular brand of Kesoram cement from its prestigious plant of Basantnagar in AP which has outstanding track record. In performance and productivity serving the nation for the last two and half decades. It has proved its distinction by bagging several national awards. It also has the distinction of achieving optimum capacity utilization.

Kesoram offers a choice of top quality portioned cement for light, heavy constructions and allied applications. Quality is built every fact of the operations.

The plant lay out is rational to begin with. The limestone is rich in calcium carbonate a key factor that influence the quality of final product. The day process technology uses in the latest computerized monitoring overseas the manufacturing process. Samples are sent regularly

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to the bureau of Indian standards. National council of construction and building material for certification of derived quality norms.The company has vigorously undertaking different promotional measures for promoting their product through different media, which includes the use of news papers magazine, hoarding etc.Kesoram cement industry distinguished itself among all the cement factories in Indian by bagging the National Productivity Award consecutively for two years i.e. for the year 1985-1987. The federation of Andhra Pradesh Chamber & Commerce and Industries (FAPCCI) also conferred on Kesoram Cement. An award for the best industrial promotion expansion efforts in the state for the year 1984. Kesoram also bagged FAPCCI awarded for Best Family Planning Effort in the state for the year 1987-1988.One among the industrial giants in the country today, serving the nation on the industrial front. Kesoram industry ltd., has a checked and eventful history dating back to the twenties when the Industrial House of Birlas acquired it. With only a textile mill under its banner 1924, it grew from strength to strength and spread its activities to newer fields like Rayon, Transparent paper, pipes, Refractors, tyres and other products.Looking to the wide gap between the demand and supply of a vital commodity cement, which play in important role in National building activity the Government of India had de-licensed the cement industry in the year 1966 with a review to attract private entrepreneur to augment the cement production. Kesoram rose to the occasions and divided to set up a few cement plants in the country.Kesoram cement undertaking marketing activities extensively in the state of Andhra Pradesh, Karnataka, Tamilnadu, Kerala, Maharashtra and Gujarat. In A.P. sales Depts., are located in different areas like Karimnagar, Warangal, Nizamabad, Vijayawada and Nellore. In other states it has opened around 10 depots.The market share of Kesoram Cement in AP is 7.05%. The market share of the company in various states is shown as under.STATES MARKET SHARE Karnataka 4.09%Tamilnadu0.94%24

Kerala0.29%

Maharashtra2.81%

Process and Quality Control :

It has been the endeavor of Kesoram to incorporate the Worlds latest technology in the plant and today the plant has the most sophisticated.

X-ray analysis :

Fully computerized XRF and XRD X-RAY Analysers keep a constant round the clock vigil on quality.

Supreme performance :

One of the largest Cement Plants in Andhra Pradesh, the plant in corporate the latest technology in Cement - making.

It is professionally managed and well established Cement Manufacturing Company enjoying the confidence of the consumers. Kesoram has outstanding track record in performance and productivity with quite a few national and state awards to its credit.

BIRLA SUPREME, the 43 Grade Cement, is a widely accepted and popular brand in the market, commanding a premium.

However to meet the specific demands of the consumer, Kesoram bought out the 53 grade BIRLA SUPREME GOLD, which has special qualities like higher fineness, quick-setting, high compressive strength and durability.

Supreme Strength :

Kesoram Cement has huge captive Limestone Deposits, which make it possible to feed high- grade limestone consistently, Its natural Grey colour is anion- born ingredient and gives good shade.

Both the products offered by Kesoram, i.e. BIRLA SUPREME-43 Grade and BIRLA SUPREME-GOLD-53 Grade cement are outstanding with much higher compressive strength and durability.

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The following characteristics show their distinctive qualities.

ComprehensiveOpc 43BirlaOpc 43 grBirla

Strengthgrls 8112Supreme 43Is 1226987Supreme

1989gradeGold 53 gr

3 days mpaMin. 2331 +Min. 2738+

7 days mpaMin. 2342+Min. 3748+

28 days mpaMin. 4350+Min. 5360+

D.C. SYSTEM :

Clinker making process is a key step in the overall cement making process. In the case of BIRLA SUPREME/GOLD, the clinker-making process is totally computer. control. The Distributed Control System (DCS) constantly monitors the process and ensures operating efficiency. This eliminates variation and ensures consistency in the quality of Clinker.

SUPREME EXPERTISE:

The Best Technical Team, exclusive to Kesoram, mans the Plant and monitors the process, to blend the cement in just the required proportions, to make BIRLA SUPREME/GOLD OF Rock Strength.

18 MILLION TONES OF SOLID FOUNDATION :

Staying at the top for over a Quarter Century, Quarter Century is no less an achievement. Infact. Kesoram is synonymous with for over 28 years.

Over the years, Kesoram has dispatched 18 million tones of cement to the nook and corners of the country and joined hands in strengthening the Nation. No one else in Andhra Pradesh has this distinction. The prestigious World Bank aided Ramagundam Super Thermal Power Project of NTPC and Mannair Dam of Pochampad project in AP arc a couple of projects for which Kesoram Cement was exclusively uses: to cite an example.

26

CHEMICAL CHARACTERISTICS:

Opc 43 grBirlaOpe 53 grBirla

Is 81 132-989SupremeIs 12269-Supreme

43 grade87Gold 53 gr.

Loss on inflection %Max 5