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Interaction | June 2013

We are planning for forward integration.

Fly Ash handler Ashtech Technologies Pvt Ltd looks at double fold increase in its business through forward integration. The company plans to increase its capacity for fly ash blending and cement manufacturing. Vipin Dave, General Manager, shares the company's expansion plan.

Can you brief us about your company operations?We basically utilize fly ash that is released by the thermal power plants. So our work is limited to coal based thermal power plants. Every time we add a new unit the business volume increases substantially. Earlier, we were working only with Reliance Infrastructure's Dahanu project and then we started working with Ennore Thermal Power System in Chennai. Now, since last two years we are working with NTPC and many others. We are doing about 6000 tonne everyday approximately.

What kind of growth has the company booked in the fiscal year 2012-2013?In terms of sales four years before we were less than 100 crore. Last year, it was 200 crore. This year, it has reached nearly 350 crore and we expect that year after that it will reach nearly 500 crore.

How you bid the projects?
We would like to know. Our process is totally different. My basic money comes from fly ash and I enter into a contract with power plant. They do not have to pay me anything. I put my money, our company Ashetech puts its own money, may be 15 crore or 20 crore for installing systems for fly ash collection and distribution in India. We sell fly ash. We started with two vehicles in the year 1992. After 20 years, now we have 580 vehicles for distributing to plants and one vehicle every day distributes 25 tonne you can imagine.That means you are a part of a supply chain to pick up the fly ash from the power plant to other industries such as cement. So do you have any longterm agreement with companies who are using fly ash.

For some of the departments we have long term agreement for 10-15 years. There are companies with whom we have agreement for one year, where we do not put our money. It is their collection system from where we pick up and there are other players also like us who pick up they give us 4000-5000 tonne per month but we do not prefer that. Normally, we prefer a one to one contract.

Do you have own plants for making value added products out of this fly ash?
We have eight ready mix concrete plants. Out of this, three plants are for small blocks and pavers. We also process fly ash and pack into a bag. It is a labeled product.

What kind of targets you have set for the next two to five years?
What we are planning for forward integration like earlier. At present we have own 8 ready mix concrete plants and going ahead we may add four more in the next three years. We have one cement plant at Raichur where cement and fly ash are blended. It started six months before. We are putting up one more plant at Mangalore. At the end of three years you will see that I have five plants for cement. Each one is 1500 tonne per day that is 70,000 bags of cement.

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