Burial’s Calcium-carbide business was facing the Global Competition which is an external factor and it is out of the control of the corporation. As company know its strength in Cement sector and considering the factors that were in favor of hike in Cement demand like * Growth in Economy (demand of more Infrastructure) * Increase In demand of Real estates * Revise of Liberalizing Rules and Regulations In 2000 Increased the number of export units Due to the above said reasons company sees a future growth In the Cement sector and decided to Increase the capacity of Durra Cement Plant by 1
Million Tones and Chandlers Cement Plant by 3 Lack Tones per annum. With this company will cater the future demand of Cement. Power requirement is major factor of the Cement plant but due to increasing Power tariffs it was becoming a hurdle for the company to be competitive in the market. So now company has decided to setup its own power plant of 27 MM as a new industrial undertaking at M. P. And Chandelier, Restaurants. This plan to setup of Power Plant will help the company to improve upon its present cost structure and also to be a cost effective in its future plans.
Company is not planning anything for its other business areas where the company is losing money as all those business’ were getting affected by the external factors and also depends upon the activity of its competitors and Government Polices, Rules and Regulations. As to some extent Iron and Steel are complementary products of cement. So Increases In the demand of Cement will also Increase the demand of Iron and Steel and the expansions by the company which will make the company more dominant and competitive in the market and helps improve in the other business areas also.
