Board members
Shri L N Jhunjhunwala
Shri Ravi Jhunjhunwala
Shri Shekhar Agarwal
Shri Kamal Gupta
Shri D N Davar
Shri P Murari
Shri Lalit Mohan Lohani
Shri Riju Jhunjhunwala
Shri Om Parkash Bahl
Products
Chairman-Emeritus
Chairman & Managing Director
Vice-Chairman
Director
Director
Director
Nominee Director-LIC
Director
Director
2. p0wer
One of the major bottlenecks plaguing the Indian industry has been the shortage
of power. At HEG Limited, we realized this as early as 1995 and overcame this problem by
setting up the group's first hydropower project of 13.5 MW rated capacity in Tawanagar,
district HOSHANGABAD (M.P.) which was commissioned in 1997. The power generated at
this unit is wheeled to the graphite plant at Mandideep. This not only ramped up the
efficiency of the graphite plant but also opened up a window of opportunity for us to enter the
area of power generation.
Subsequently, when the Graphite Electrode capacity was increased from 66,000
tonnes/annum to 80,000 tonnes/annum, We have 64 MW captive termal power plant and
13.5 MW hydel power plant. The main equipments including the Turbine were sourced from
BHEL, India.
In physical adsorption there is a Van Der Waals interaction, having a long range, but weak forces.
Molecules of pollutant bouncing across the activated carbon fabric surface gradually loses its energy
and finally comes to rest on it. Due to weak bonds in the physical adsorption molecules can be
removed from the activated carbon fabric surface by giving a heat energy. This property is utilised in
regenerating activated carbon fabric.
Features of ACF
It is of minimum 90% pure form of activated carbon
It is soft and easy to handle
It has a BET surface area (SBET) of the range from 1,000 to 2,500 m2 g-1 with a high degree of
adsorption and desorption characteristics. Effective adsorption is several hundred times higher
than that of GAC, PAC or palletized activated carbon.
ACF is made up of filament yarn, due to which ACF is electrically conductive and hence it can be
regenerated by passing a low voltage current across the ACF surface or by heating ACF at 100 oC
for 15 to 30 minutes.
The distribution of pore size is in narrow range < 10 nm.
Usage
ACF is used in :
Air-conditioner filters.
Air purifying filters.
Clean rooms.
All other types of pollution control filters.
Anti pollution masks - for personal protection against gaseous vapours / fumes and bad odours.
Refrigerator deodouriser - to arrest odours in refrigerators.
Cigarette filters - to trap harmful chemicals present in cigarette smoke.
B. Carbon Blocks
HEG also makes Fine Grain Carbon Blocks for various applications on special orders. These blocks
are used by the customers to make value added products like Heat Exchangers, etc.
C. Graphite Specialities
HEG has a small graphite Speciality division to cater to the requirements of customers who need
Graphite Products in specific sizes and shapes. These are manufactured to individual customer
requirements as per specs and requirements
Awarded 'Rajiv Gandhi National Quality Commendation Award 2001 for Quality" by the
Bureau of Indian Standards, Government of India.
HEG Ltd bagged the prestigious National Export Award instituted by the Ministry of
Commerce, Government of India, for outstanding export performace for the year 1997-98.
HEG has also won the country's top export award instituted by the Chemical & Allied
Products Export Promotion Council (CAPEXIL) for outstanding exports for 18 consecutive
years. For 2001-02, HEG was awarded the Highest Export Award.
HEG has the largest Integrated Graphite Electrodes manufacturing plant in South Asia
and the Middle East. It is also the second largest in the world.
HEG has been regularly exporting electrodes since 1981 and today exports more than
80% of its production.
HEG's graphite electrodes are exported to 25 countries around the world, including
developed countries like USA, Canada, Germany, France, Italy, South Korea, Australia
etc. - a reward for our commitment to World winning Quality and Performance.
Competency Sustainment
Present-day best practices require that succession planning not be restricted to senior management but
also encompass key positions across relevant job categories. HEG as a truly global and modern
organisation believes in preparing tomorrow's leaders today. To that end, the Company has put in
place an effective process to sustain a talent pool that can seamlessly handle organisational change at
all times.
Industrial Relations
HEG has consistently chosen to engage its unions and labour force while initiating major changes that
directly affect them. Furthermore, employees are empowered to bring to the fore issues relevant to
them from time to time. The manner of engagement between the management and its workforce over
the years has led to the creation of mutual understanding and trust between the two.
technology
The principal raw materials used in the manufacture of electrodes are Needle coke and pitch.
The Needle coke is crushed, screened and mixed with pitch in controlled proportion at about
160C. The paste, extruded through an extrusion press, is stored as 'Green Stock'. The Green
Stock is baked slowly to 800C in specially designed furnaces. The meticulously controlled
conditions ensure the pitch cokes satisfactorily. Before coking, the pitch loses a considerable
amount of volatile matter and the resulting electrodes are known as 'Baked Electrodes'.
For high mechanical strength, density and current carrying capacity, the Baked Electrodes are
impregnated with special pitch to fill completely the porosity which results from the volatile matter
being driven off during baking. Following impregnation, the products are baked again to ensure
complete coking of Impregantion Pitch.
The Baked Electrodes then undergo a process of Graphitisation, which involves heating them to
temperatures in the range of 2800 - 3000C in lengthwise graphitisation furnaces. The
Graphitisation process itself lasts only 8 to 12 hours and the cooling down period takes several
hours.
After being taken out from the furnace, the electrodes are subjected to very strict quality control
checks before being passed for machining.
The machining operation involves turning of the electrodes to the required diameter and matching
end sockets to accept threaded nipples. All sockets and nipples are machined to very close
tolerances.
VISION
A vibrant globally acknowledged top league player in Graphite
Electrode & allied business with commitment to growth,
innovation, quality & customer focus.
MISSION
To become a leading international player in Graphite
Electrodes & related businesses by leveraging our core
competence and there by enhancing value to our customers,
shareholders, employees & society.
Quality Policy
oriented organisation
the inspiration and
Chairman message
Dear Shareholders,
Fiscal 2012-13 was a heartening year when, despite
prevailing challenges, we grew net sales 14% and net
profit 70% over the previous year.
Challenging times
Graphite electrodes, a vital input in steel making, represents
an indirect proxy of economic growth. In 2012, the global
economic momentum decelerated on account of various
intertwined factors the eurozone crisis, US fiscal cliff, forex
volatility, disruption of global oil supplies and slowing
investments in emerging economies. The result is that the
global steel industry grew a mere 1.2% (but for China it would
have gone down), the lowest in a decade. Global steel players
incurred sizeable losses in 2012. As a natural extension, this
affected graphite electrode demand. Long-term contracts gave
way to need-based spot purchases. The global industry
encountered a 100,000 MT increase in production capacity
(65,000 MT in China), creating an oversupply that pared
realisations.
Inspired response
The scenario was even more challenging for HEG Limited.
Value
HEG has invested in various initiatives to enhance stakeholder
value across the long-term. What was an Rs 565 crore
revenue company in 2002-03, grew to Rs 946 crore in 2007-08
and Rs 1,617 crore in 2012-13. This is the result of the
Companys sustained investment in its business during
industry downtrends, thereby protecting its viability across
market cycles.
On behalf of the management and the Board of Directors, I
would like to thank you for your continued support. I also take
this opportunity to thank our customers, employees, suppliers,
service providers, financial institutions and bankers for their
contribution towards the Companys success.
With best regards,
Ravi Jhunjhunwala
Chairman & Managing Director
Director Report
Print
2011-12
1617.43
1423.99
5.18
1622.61
13.60
1636.21
0.62
16.79
1441.40
258.60
(55.20)
(92.85)
165.75
Finance cost
63.60
40.68
187.91
62.64
125.27
57.93
67.14
16.09
6.66
3.39
105.79
26.48
(1.84)
62.32
15.34
(ii) Appropriations
Amount available for appropriation
406.23
331.17
1.23
a) On Equity Shares
Proposed Dividend
31.97
19.98
5.43
3.24
Transfer to:
a) General Reserve
25.00
7.50
-
1.25
25.07
300.43
368.90
2. Overall Performance
The Company recorded Net Sales Rs.1617.43 crore as
compared with
Rs.1423.99 crore in the previous year. The Net Profit has
increased to
Rs.105.79 crore as compared with Rs.62.32 crore in 2011-12
translating
to basic earning per share at Rs.26.48 as against Rs.15.34 in
Financial
Year 2011-12.
3. Subsidiary Company and Consolidated Financial
Statements
erratic power supply from the State grid for the entire expanded
Graphite Electrode capacity of 80,000 TPA.
6. Corporate Governance
A report on Corporate Governance forms part of the Annual
Report along
with the Auditors'' Certificate on its compliance.
7. Management Discussion and Analysis
Management Discussion and Analysis Report as required
under the Listing
Agreements with the Stock Exchanges forms part of the Annual
Report
8. Internal Control Systems and adequacy thereof
The Company has an adequate internal control system
commensurate with
the size and nature of its business.
An internal audit programme covers various activities and
periodical
reports are submitted to the management. The Audit
Committee reviews
financial statements and internal audit reports along with
internal
control systems. The Company has a well defined
organisational
structure, authority levels and internal rules and guidelines for
conducting business transactions.
9. Personnel
a) Industrial Relations
The industrial relations during the period under review generally
remained cordial at all the plants of the Company.
b) Particulars of Employees
The information of employees receiving salary in excess of the
limits
as prescribed under the provisions of Sub-section (2A) of
Section 217
of the Companies Act, 1956, who were employed throughout or
for a part
of the financial year under review is given as an annexure
forming part
of this Report.
10. Public Deposits
Your Company has not invited any deposits from public/
shareholders in
accordance with Section 58A of the Companies Act, 1956.
11. Conservation of Energy, Technology Absorption, Foreign
Exchange
Earnings and Outgo
Ravi Jhunjhunwala
Chairman & Managing