Central Workshop ,Auction & ware housing
PROPOSAL
- FSNL to setup central workshops at Bhilai(Chhattisgarh), Bengluru (Karnataka) and Asansol (West Bengal).
- This central workshop will be utilized for
- Repair and Maintenance of Heavy Earth Moving Machinery (HEMM) and
- Off The Road (OTR) Tyre Retrading.
- Marketing of HEMM, spares & products for general industrial use and auction of HEMM.
- Central Stores.
At present, major portion of revenue, approximately 80%, is a dependent on contracts with SAIL, RINL, NINL and IIL. FSNL doesn't enjoy bargaining position with its main clients and would also like to reduce its revenue dependency (in percentage) on SAIL, RINL, NINL and IIL.
The dependence has resulted in weak bargaining power and as a result, while fixed overhead are on rise, the contribution is on decline.
In order to counter the problems stated above, FSNL wishes to foray in to new revenue generating and cost saving streams which will help in redeployment of man power, create new revenue generating /cost saving streams, new direct/indirect employment opportunities.
- FSNL has big fleet of various HEMM which is aged and FSNL incurs significant costs towards its repairs & manitenance.
- The fleet of HEMM at present is maintained and repaired at the work site which results in delay as there is no proper facility to repair and maintain HEMM. This results in difficulty in continuity of operations.
- Delay in movement of required spares and machinaries within steel plants due to internal procedures of movements of goods also adds to difficulty in continuity of operations.
- FSNL has 50 years of experience in running and maintaining its fleet of HEMM as such, a Central workshop will enable it to maintain the fleet of HEMM effectively. Experience can also be used to provide repair and maintenance to third party HEMM.
- Establishment of central workshop for repairs & maintenance of HEMM will enable FSNL to maintain its fleet of HEMM in operational state in a much better manner than at present.
- FSNL can also utilize its existing network to market its services to SAI and mining companies.
- There is also bright scope to extend the services to players both Govt. and Private sectors where mining and construction industry play a vital role in state economy.
OTR (Off The Road) Tyre Retrading
FSNL has a huge fleet of HEMM which use OTR tyres. Currently, FSNL gets the retrading of OTR tyres trough private parties like TVS Srichakra which in turn get it done through retraders empanelled with them.
Foray into OTR tyre retrading will not only help FSNL to cut down its on retrading of OTR tyres but also extnd and market its services to SAIL and other PSUs where it is already has an established network.
The main consumer of OTR tyre is mining sector is dominated by public sector enterprises. Coal India Ltd. is the biggest consumer (65% of OTR Tyres) and also the biggest single source originating OTR tyre retrading demand.
FSNL, being a Government company will find preference with PSU(s) as well as private parties.
Marketing
The proposed facility at Bhilai will also be used to build a showroom and market HEMM and spares, OTR tyres, crushing & screening equipments, industrial oils, spares, lubricants, cutting oil and products for general industrial use.
Auctioning
FSNL also plans to auction HEMM at the proposed facility. There is a good demand of not only first hand HEMM but also second hand HEMM. The market of seconf hand HEMM is fragmented and emerge as a strong player in this segment. FSNL already has thorough knowledge of HEMM. Any second hand HEMM getting sold via FSNL will have more credibility around quality, performance and price and as such buyer will preferto buy equipments sold via FSNL.
BUSINESS MODEL AUCTIONING
- Prospective sellers will bring their equipments to central workshop facility.
- FSNL will inspect and determine a fair price for the HEMM brought in.
- Auction will held after proper notification.
- Prospective buyer will get handbook containing details of HEMM buyer is interested to buy.
- Auction to be held through open bidding process and equipment will get sold to highest bidder.
- FSNL to charge commission for the services provided.
For futher queries please contact
MR P.K.Dutta/P.D.Swarnkar
Ph.:91-9826166090/91-9926116795