Sri Vishnu Cements (SVCL), a part of Raasi Group of Companies, was promoted by K S N Raju in association with Andhra Pradesh Industrial Development Corporation.
The company manufactures portland cement. A few months after the production of cement commenced, it faced a major power cut as high as 60%, forcing it to stop the main plant and keep only the cement mill running to maintain the despatches of 100-200 tpd. During 1987, the overall working was affected by heavy power cuts and the factory was closed for three months. Only during the later part of 1987, did the situation improve slightly. During 1988-89, the production showed a substantial increase. To combat the power problem, SVCL installed four Skoda DG sets. The company continued to suffer losses due to steep increase in input costs and drastic reduction in the selling prices on account of surplus production in the market.
During 1991-92, for the first time since inception, the company achieved full rated capacity for clinker. The entire production of cement was sold. The profit margins, though, continued to be under stress due to increase in the cost of inputs and erratic power supply. During 1992-93, it achieved 108% capacity utilisation but the operations suffered on account of cut-back in government expenditure on civil projects and the hike in the costs of production and distribution. During 1989-90, it became a sick unit and was referred to the Board for Industrial and Financial Reconstruction (BIFR). In 1992, BIFR sanctioned a rehabilitation package for its revival.
The India Cements and its subsidiary namely ICL Securities have accquired 94% of the share capital of the company from the old management and also by way of open offer made to share holders of the company. The company is now a subsidiary of ICL Securities and in turn a subsidiary of India Cements.
After the upgradation of the cement plant at Sitapuram, whereby the capacity of the klin is being increased from 2700 TPD to 3400 TPD. The company is now in a position to produce 13 lakh tonnes of cement.
During the first two months ended May 2001, clinker production was 0.51 lakhs tonnes as against 1.19 lakh tonnes of the corresponding previous year period. While cement production was at 1.02 lakh tonnes as against 1.41 lakh tonnes in April - May 2000, sales was 0.98 lakh tonnes as against 1.45 lakh tonnes.