special blasts ltd share price Management discussions

SPECIAL BLASTS LIMITED ANNUAL REPORT 2004-2005 MANAGEMENT DISCUSSION AND ANALYSIS FUTURE PROSPECTS: Explosives Industry is mainly dependent on the mining sector, which consumes 90% of the total explosives produced in the country. The production of the coal is growing at a pace of 8% per annum and this is resulting in about 13-15% growth in the Bulk Explosives. With growing demand for power & steel, coal mining is bound to grow. In recent times it has grown at 8% annually. Further Golden quadrilateral project of national highways has created an additional demand of explosives Keeping in view these facts the short to medium term prospect of explosive industry appears to be good. With the shift to Vehicle mounted bulk delivery system of the fourth generation technology, the demand for Bulk Emulsion explosives shall grow at a rate of 25000 to 30000 tones per annum. This gives enough room for company to grab the share of this growth. The company is well placed to get the strategic advantage of the favorable logistics with regards to location and resources. FUTURE PLANS OF THE COMPANY: In view of the growing demand of Bulk Explosives, the company has proposed to expand its activity of Site Mixed Bulk Emulsion Explosive by increasing additional capacity of 15000 MT to cater to the growing demand from mining sector in the region. Further company has planned to establish a Detonator Plant ai village Pirada, Dist. Durg (C.G.), with a capacity of 10 Million Nos. The requirement of detonators is very high in India as well as abroad. The main raw material used in the manufacturing of Explosives is Ammonium Nitrate and it is imported through Vishakhapattnam Port Trust and the consign men is were kept in the Store Houses, leased on the rental basis. The company so as to maintain adequate stocks in meet the present and future needs of trading and manufacturing and also to maintain adequate stocks to meet the expansion needs of bulk Explosive Unit. Looking to the above needs the company has purchased Land of 50000 sq. ft. & to construct Go down on it. For all these purposes, the company plans to going for public issue. PERSONNEL: Since there was no employee who was drawing more than Rs. 24.00 lacs p.a. if employed through out the year, or Rs. 200000 /- per month if employed for the part of the year, the required information under 217(2A) of the companies act, 1956 read with companies (particulars of the employees) rules 1975 as amended is not given.