Further to the efforts taken to improve the market share, the company also took up the modernization and revamping of machineries to improve the production, productivity and quality. The billet heating furnace of the rolling will was re-furbished to provide better fuel efficiency and also the mill stand guides were replaced with latest roller guides. The flat stacking stand was modified with an automatic pusher unit. In addition to this, in the springs division, additional machines like cold trimming press, hydraulic eye rolling with conveyorised end heating furnace were installed to provide better fuel efficiency and productivity. A walking beam furnace was installed in the heat treatment section complemented by a double door conveyorised electrical heating tempering furnace to increase the production capacity.
With the execution of these above changes, the company’s turnover which was at 19.5 crores during 1994 reached 27.3 crores by the end of 1998.
DE-COMMISSIONING OF STEEL MELTING DIVISION
However, the subsequent years towards the beginning of the year 2000 witnessed a sharp fall in the working of the company due to the non-availability of required raw material for steel melting division i.e., steel scrap and also abnormal increase in the cost of power and other inputs required for making springs steel. This resulted in un-economical operation of the steel melting division with the turnover and profitability taking a dip between 1998 – 2004.
Non-viability of running the steel melting division for the above said reasons affected the growth of the company and a decision was taken to de-commission the steel melting division, and out-sourcing the procurement of springs steel billets. Accordingly the steel melting division was de-commissioned after making the last heat on 20th June 2003.
Along with this decision, the company went ahead and introduced VRS scheme and also reducing the contract demand from the electricity Board to run only the rolling mill and springs division. The company started procuring the billets from Vizag Steel from the year 2005 and started rolling these billets to provide required raw material to the springs division.
Springs steel flats were also procured from other steel suppliers to compensate the additional requirement of springs division. These corrective actions led the company again towards the path of progress and reach a turnover of 40 crores in the recently concluded financial year 2010-2011.