Kerala - Thiruvananthapuram   

‘Titanium’ races against deadline

THIRUVANANTHAPURAM: An innovative marketing strategy and conscious cost-cutting measures supported by a coincidental dip in oil and sulphur prices have combined to rescue Travancore Titanium Products (TTP) from the brink of crisis.

But, even after registering a profit of Rs.10 crore during the past three months, completion of the crucial pollution abatement plant before the July deadline set by the High Court seems to be a difficult proposition.

Its turnaround is being cited as a classic case in how meaningful interventions can improve the functioning of ailing public sector companies. The Industries Department’s decision to give a free hand to the management for exploring viable options may have made all the difference.

Having channelised Rs.10 crore from the corpus of Kerala Minerals and Metals Limited (KMML), Chavara, the TTP management managed to raise production by utilising idle capacity, reducing wastage and optimising employee utilisation.

While the monthly production of titanium dioxide stood at an average of 400 tonnes last year, it went up to 45 tonnes a day this year. Regular supply of ilmenite was ensured from the quota allotted by Indian Rare Earths (IRE) to KMML. The joint marketing strategy for the two firms also worked to the advantage of TTP. The fall in sulphur prices from Rs.40,000 to Rs.4,000 and a corresponding fall in oil prices too helped. The number of regular staff came down from 1,200 to 700 (retired in due course). This is inclusive of a fall in the strength of officers from 180 to 85.

The High Court is unlikely to extend the deadline for the pollution control project. Work has been stalled, after investing Rs.80 crore.

It may not be feasible to go ahead with the project, given the annual turnover level of Rs.100 crore and a profit of Rs.10 crore. Though the management has cleared dues to the vendors, the financial position is not satisfactory. The government will have to either step in to support the management, or help the company find other sources to go ahead with the project, sources said.

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