RMC and Bitumen Division
Our RMC and bitumen division’s revenue was Rs. 775.59 million and Rs. 808.58 million for fiscal 2010 and fiscal 2009, respectively. Our RMC and bitumen division supplies RMC to our EPC division as well as selling it to third parties. We have 14 RMC plants with a total production capacity of 650 cubic metres per hour. We have four RMC plants with a total production capacity of 240 cubic metres per hours that are only used for sales of RMC to third parties: two plant in Mumbai with a capacity of 150 cubic metres per hour; one plant in Indore with a capacity of 60 cubic metres per hour; and one plant in Nashik with a capacity of 30 cubic metres per hour. The remaining 10 RMC plants are mainly used for captive use by our EPC division: two plants in Pune with a capacity of 65 and 30 cubic metres per hour; one plant for use in constructing the NH–6 Bhandara Road with a capacity of 30 cubic metres per hour; two plants for use in constructing the NH–6 Durg Bypass, Chhattisgarh-Maharashtra Border Road with a capacity of 15 and 30 cubic metres per hour; two plants for use in constructing the Jaora-Nayagaon Road with a capacity of 15 and 30 cubic metres per hour; two plants for use in constructing the NH-3 Pimpalgaon – Nashik – Gonde road with a capacity of 60 and 120 cubic metres per hour; and one plant in Sinnar with a capacity of 15 cubic metres per hour. We have 86 concrete transit trucks and 19 concrete pumps. We sell our RMC directly to third parties at negotiated rates, with prices linked to the prevailing market price for raw materials, primarily cement. We do not have any long-term contracts for the sale of RMC. The raw materials used to make our ready-mix concrete are cement, metal, sand and construction chemicals. We have not entered into any long-term supply contracts with our suppliers of raw materials. In the past, we have experienced some difficulties and delays in obtaining adequate supplies of cement, although we have not experience such difficulties or delays since June 2008. If we cannot obtain adequate supplies of cement not only could it have an adverse effect on our EPC business but we may be unable to sell ready-mix cement to third parties, which could have a material adverse effect on our ready-mix concrete business and our results of operations and financial condition. This division also sells and processes bitumen to a higher grade for use in road projects and supports our EPC division by supplying it with bitumen. We have one plant in Pune for the processing of bitumen with a capacity of 60 metric tonnes per day. We sell our bitumen directly to third parties at negotiated rates, with prices linked to the prevailing market price of oil. We do not have any long-term contracts for the sale of bitumen.