In 1996-97, SAIL's revenues plunged by 60 per cent....
Last financial year, we had to bear approximately Rs 1,000 crore due to escalation in input costs which we were not able to pass on to the customer due to the sluggish market conditions and rise in competition. Simultaneously, prices declined in the domestic market primarily due to cheaper imports, especially from the CIS countries. If we had been able to pass on this additional cost to the customer, our profit would have been much more than that for the previous year.
Performance has been way behind target in April-June 1997 too, so what do you see the final 1997-98 figures to be like?
We are poised this year not only for a higher turnover but a much higher profit. In the first quarter, we have pegged production realistically to cater to market demands, and we've been exporting larger volumes to ease the pressure on the domestic market. We've also utilised this opportunity to carry out major capital repairs. We are planning for around 19 per cent growth in total sales as well as a production growth of four per cent over the previous year.
What's the SAIL management doing to reverse the downtrend?
We've already announced and implemented a five-point plan. This includes reducing costs more definitely and faster; maximising revenues by increasing net sales realisation; improving customer orientation and quality; improving asset utilisa-tion; and raising exports to generate higher revenues.
Some people allege that even the lower profit figures announced are not the actual ones.
That's absolutely untrue. As a government organisation, we go through various audits including government audit before profit or loss figures are announced. Our figures as announced are absolutely correct.
Is SAIL launching a Voluntary Retirement Scheme to trim its size?
I wouldn't like to comment on this right now. Any such move may be taken up only after the government's Navaratna autonomy package is properly communicated to us.
Will SAIL under Arvind Pande have a different or better image and performance than the SAIL under M.R.R. Nair?
It's very difficult to answer this hypothetical question because it's a question of perception as to whose image is better. Market conditions that exist today are totally different from those during the time of the previous chairman and this calls for the appropriate course of action keeping in view the dynamics of the market. We're expecting a much larger turnover and bigger profits in the current financial year compared to last year. Our strategies and actions will be designed to achieve that.
