KOLLAM: After setting an all-time record production of titanium dioxide pigment in the previous financial year, the KMML’s annual production figure is set to nosedive in the current financial year. The production of titanium dioxide pigment, during 2010-2011, was an all-time high of 36,879 metric tonne (MT). While battling with various issues and Ilmenite shortage, the production during current financial year till January 31 stood at 22,934 MT and expectedly will not cross 28,000 MT by the end of March. On the other hand, the profit figures during this financial year have already surpassed existing records, thanks to the high rates prevailing for titanium dioxide in the international market. Defending the low production figures, Executive Director C J George told ‘Express’ that despite a decline in production, the profit during the year has already crossed the previous year’s figures. “The profit during the first 10 months of this financial year was around Rs 128 crore as the titanium dioxide received a good price throughout the year. The profit is company’s all-time high.” Sources in the company said that the production target during the year was 38,000 MT which was revised to 30,000 MT during the latter half of the financial year. The expected profit during the financial year is Rs 130 crore. The profit during 2010-2011 was Rs 112 crore and the turnover was Rs 588 crore, according to the company website. Even though the company can boast of a record profit, the fact is that a sharp decline in the production at the plant with an installed capacity of 40,000 MT will result in a loss of at least 30 per cent of the turnover. The demand for titanium dioxide is very high at present and price per metric tonne is a whooping Rs 2.12 lakh. The average production since upgrading the capacity of the plant to 40,000 MT from 2005-2006 had been 35,000 MT. It is estimated that there will be a decline of over Rs 100 crore in the annual turnover owing to the shortage in production. The KMML United Front, a joint organisation of CITU, INTUC, AITUC and UTUC unions of the company, had raised allegations against the management for decline in the production. “The company has become a ship without a captain and there is no full-time managing director and Industries Secretary Alkesh Kumar Sharma has been given the additional charge as the Managing Director since September 2011,” the Front said in a statement. The instability in the management has resulted in various issues. There was a delay in conducting the annual maintenance and this had its impact on the production, the statement said. Meanwhile, Executive Director C J George cited the decrease in production due to the shortage of Ilmenite and various problems plaguing the company during the period. He indicated that the decline in the production would not affect the prospects of the company.
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