IPL has chalked out plans to diversify into sugar manufacturing with its recent acquisition of sugar mills from the Uttar Pradesh Government. The plus point is lot of land and the minus point is very bad work culture. VRS is being offered to people and good professionals are being recruited. As the process of change or make-over is complete, IPL will install power plants.
Power from sugarcane base is by far the cheapest and cleanest, and the company would invest at least Rs 700-800 crore in the next four years to set up power plants. It is also much cheaper than from giant power plants coming up all over that are based on imported coal, and the capital expenditure per megawatt is the lowest in cane-based power plants as opposed to coal-fired plants.
With farmers seeking to overcome the problems inherent in agriculture and increase their income with rearing of livestock, IPL has taken this opportunity to lend its support to them by procuring milk from the village cooperatives through its ultra modern processing at its own plants so that the final products passes a host of tests to be hygienic and wholesome.
The company's dairy divisions sell three lakh litres of milk a day under “dairy fresh' logo and its cattle feed plants of 250 to 300 tonnes were being scaled up. IPL has diversified into high quality cattle feed and set up production units at Sikandarabad in Bulandshahar district of Uttar Pradesh and in Renigunta Mandal of Chittoor District. IPL cattle feeds had improved the milch capacity, besides facilitating healthier calving.
The fast moving consumer goods (FMCG) industry had identified rural demands for beauty parlours and gems, and IPL conceived the idea of selling gold and medallions of purity to farmers who had always been taken for a ride by goldsmiths of dubious nature foisting their wares on gullible rural households.
The move would help farmers during times of difficulties too since the gold and medallion they acquire in good times could be disposed of without loss of value as the MMTC brands of jewellery and medallions were hall-marked and trusted.
IPL has decided to foray into the infrastructure sector with plans to invest up to Rs 1,500 crore to set up a greenfield port in Gujarat. An important aspect of IPLs operations is its port operations and by virtue of being in the trade for a long period and handling huge quantities, the company has established an efficient port handling operation. Setting up a port was a logical step as we already have a long experience in port handling operations.
The company handles fertiliser shipments of more than three million tonnes a year at all the major and minor ports. With the core competence of IPL being its excellent stevedoring, clearing and forwarding arrangement at all the ports, matching infrastructure of port godowns, mobile bagging plants at the shores and inland storage facilities at more than 500 strategic locations, the company plans to consolidate these inherent strengths by developing port-related projects in its ongoing expansion plans. The efficient management of the entire gamut of fertiliser ship-handling and distribution to domestic retail outlets through cooperatives continue to be the mainstay of the organisation that completed six decades last year.