About MCL

Malabar Cements Ltd., a fully owned Govt. of Kerala Undertaking, is synonymous with superior quality cements, vouched by customers spread across the state of Kerala. The Company was incorporated in April 1978 and commenced production in April 1984 at its Walayar plant. At Malabar Cements, product improvement is not just a onetime strategy for boosting sales, rather a quest of excellence. Perfecting the product quality is everybody's concern here. Our distinction begins with scientifically selecting the best raw materials for clinker. Stringent quality control is exercised right from pre-blending raw materials, clinkerisation, clinker grinding, and finally to cement packing. Malabar Cements contributes to the developmental activities of the State by supplying the basic construction material. Only Malabar Cements can supply its cement, 'factory fresh', without any deterioration in the original strength either due to moisture or humidity, within 12 hrs anywhere in Kerala. With a production capacity of 4.2 lakh tons of cement per annum,the unit at Walayar is the largest. As part of expansion programme, it has commissioned a 2.0 lakh tons clinker-grinding unit at Cherthala in Alappuzha district in August 2003. Thus the total installed capacity of MCL is 6.2 lakh tons. MCL is the first public sector company to receive ISO Certification & to win the National Award for best achievement in Energy Conservation. Till date, MCL has experienced no loss of production due to labour unrest. In just over 15 years of commissioning, Malabar Cements has been able to meet about 10% of total cement consumption in Kerala. With the expansion plans in progress, the figures are sure to rise further.

History
Cement is a necessary constituent of infrastructure development and a key raw material for the construction industry. As late as the 70s, the State of Kerala was virtually starving for cement. The state lacked a portland cement factory in either private or government Sector. In 1961-62, the Geological Survey of India located a limestone deposit in the Pandarethu valley of the Walayar region on the northern side of the Palakkad gap. Located in dense forest area, the hilly terrain was required heavy investment to mine. The State Govt. ventured to put up a Cement factory in the region. The feasibility study conducted revealed that the construction of a 1200 tpd dry process cement plant using the Pandarethu limestone is feasible. KSIDC obtained an Industrial License for the manufacture of cement in November 1976 and decided to go ahead with the project and formed Malabar Cements Limited to set up, own and operate the proposed cement plant. The plant was successfully commissioned in 1984 and the commercial cement production started on 1984. Now, The Company is all equipped to set precedence among public sector units in the state. The launch of two Superior quality products under the brand name Malabar Super and Malabar Classic, in the year 1994-95 gave a boost to the market presence. Various modifications carried out since 1995 have improved production and productivity of Malabar Cements. A 2.5 MW multi-fuel power plant was commissioned in June 1998 to complement 25% of the total power requirement for the Walayar plant operations. As part of expansion, the company has commissioned a 600 tpd Grinding Unit at Cherthala in August 2003. The modernization of Cement Mill, completed in December 2004, helped to increase the cement production. The company has upgraded the plant with state-of-the-art technology; Belt bucket elevators, Kiln automation, modification of cement mill internals etc, are few to mention. The 0.42 million tones capacity is less than 10% of the cement consumption in Kerala and expansion will alow the company to harness the markets beyond its core

segment.

Growth Story
Some of the major milestones while on our growth

Feasibility Study for a cement plant at Walayar. - 1975 Industrial License for the manufacture of Cement - 1976 Date of Incorporation of Malabar Cements - 1978 Commencement of mining activities - 1981 Commissioning of Walayar Plant - 1984 Commencement of clinker production - 1984 Commercial Cement Production started - 1984 43-grade OPC cement Malabar Super launched - 1994 New product: Malabar Classic launched - 1994 Obtained ISO : 9002 certification, first PSU in Kerala to secure this certification - 1996 Installation of 2.5 MW multi-fuel power gen. set - 1998 Introduction of Malabar Aiswarya brand - 2003 Commissioned of 600 tpd cement grinding unit at Cherthala - 2003 Modernization of Cement Mill to close circuiting - 2005 Introduced ERP system for integrated operation of all functional areas. - 2007 Switched over to Quality Certification ISO : 9001 :2008 - 2010

Board of Directors
Chairman Managing Director Executive Director Sri M. Gireesh Kumar, IAS Sri R. Madhusoodanan Nair Sri. N.R Subramanyam Sri K. Joseph Mathew Sri P. Unni Sri T.Balakrishnan IAS, Additional Chief Secretary , Industries Dept., Govt. of Kerala Sri M. Sundaramoorthy Sri M. S. Sadanandan

OTHER BOARD DIRECTORS Special Officer to the Govt. Finance (Resource) Dept . Joint Secretary, Industries Department. Managing Director, KMML, Chavara. Chief Engineer, National Highways Public Office. 'Ayilyam', KS Housing Board Colony, Karingarapully PO, Kadamkode, Palakkad.

Cerifications and Achievements

ISO Certification

IS/ISO 9002 : 1994 certification obtained in November 1996. First PSU to secure this certification. Switched over to the revised standard ISO 9001 : 2000 in Aug2003.

Switched over to Quality Certification ISO : 9001 :2008 in 2010

Awards Kerala State Pollution Control Board Award - 1990-91 Secured first State award for Energy conservation - 1992 VSSC Rolling Trophy for safety measures - 1994 & 1995 NCBM National Award for the Best improvisation in energy - 1998 Kerala State Energy Conservation Award - 1998 Govt. of Kerala awarded for outstanding achievement in Pollution abatement - 2007 Introduced ERP system for integrated operation of all functional areas. - 2007 Kerala Trade Award of Kerala Government 2010 Indian Bureau of Mines Afforesation award National Energy Efficiency Award Management Studies Award

Audited Performance & Financials

Physical Performance

2005-06 Clinker Production Actual Capacity Utilization Cement Production Walayar Actual Capacity Utilization CGU Actual Capacity Utilization Total Actual Capacity Utilization Cement Despatch Walayar CGU Total Cement Sale (MT) (MT) (MT) 506725 181915 688640 (MT) (%) 682916 110.15 (MT) (%) 180696 90.35 (MT) (%) 502220 119.58 (MT) (%) 489000 122.25

2006-07 425548 106.40

2007-08 412270 103.07

2008-09 430740 107.69

2009-10 341010 85.25

467500 111.31 153644 76.82 621144 100.18 468597 153862 622459

444130 105.75 124832 62.42 568962 91.77 442975 124655 567630

506070 120.49 94000 47.00 600070 96.79 500905 94007 594912

410550 97.75 6380 3.09 416930 67.25 415334 6552 421886

Walayar CGU Total

(MT) (MT) (MT)

504723 181854 686577

470421 153916 624337

442342 124655 566997

497163 94007 591170

415038 6552 421590

Financial Performance (Rs.Lakhs)

2005-06 Turnover Net Profit Walayar CGU Total Cash Profit Walayar CGU Total 914.11 46.49 960.60 620.93 -81.11 539.82 22780

2006-07 23970 2308.13 396.70 2704.83 2622.68 558.40 3181.08

2007-08 25349 3576.65 417.62 3994.27 3936.77 575.96 4512.73

2008-09 27877 4635.08 150.78 4785.86 5008.73 309.49 5318.22

2009-10 18941 3436.33 -404.63 3031.70 3843.95 -246.32 3597.63

Profit and Loss Account (Rs. Lakhs)

2005-06 Income Sale of Cement Other Income Increase/decrease in stock Total Raw Material consumed Power Coal Packing material Stores & spares Factory overheads Staff Expenses Administration, Selling & other expenses

2006-07

2007-08

2008-09

2009-10

22780.37 23969.71 25348.60 27877.08 18941.39 37.97 2.58 129.76 -182.87 600.02 -140.29 563.68 39.50 702.29 1125.97

22820.92 23916.60 25808.33 28480.26 20769.65 3071.62 2268.98 2932.02 1303.94 1431.02 569.79 2206.44 1943.45 3233.46 2048.92 2599.87 1243.14 1627.98 564.33 2314.59 1182.12 2928.13 1958.24 3091.73 969.17 1453.71 527.91 2754.01 937.91 2775.12 2561.87 4712.37 940.24 1664.52 624.25 2739.36 576.69 1732.35 1645.09 3053.84 590.07 1584.58 670.48 2995.04 793.53

Interest & other financial expenses Depreciation Excise Duty Sales Tax Miscellaneous expenses written off Total Profit for the year before Tax

307.86 420.78 3254.84 2565.17 5.19

181.26 476.25 3061.29 2673.37 5.19

52.45 518.46 3821.46 2800.88 0.00

12.11 532.36 3414.97 3135.35 5.19

50.39 565.93 1912.89 2137.57 5.19

22281.10 21211.77 21814.06 23694.40 17737.95 539.82 2704.83 3994.27 4785.86 3031.70

MCL Product Range

Malabar Cements uses the state of the art, dry process technology for the manufacturing of super quality cement and the quality is much above the national standards. For Various applications, the company has three brands viz, "Malabar Super", "Malabar Aiswarya" & "Malabar Classic" 1. MALABAR SUPER A fabulous product in every sense: Super in strength, Wonderful in workability, Incredible in aging, Implausible in durability, and Fantastic in strength gain. An AMAZING performer! Tests carried out by Bureau of Indian Standards have established unshakeable credentials of Malabar Super. Super strength accelerates setting time and fine finish. Malabar super is superior in strength to ordinary '43' grade cement. It attains the 28 days' strength required as per IS in just 7 days time. Not only that, the strength attained in 28 days time is about 50 percent more than the IS specification. The amazing strength of Malabar Super arises from it's unequalled particle fineness, 33 percent more than the IS specification and consistency in composition, made so by computerized process control system. 2. MALABAR CLASSIC Superior in its class of cements, it offers better setting properties delayed initial set and early final set offering more working time and reduced observation time. Structures achieve excellent dimensional stability with the heat resistant properties of MALABAR CLASSIC. It also reduces heat generation during hydration, making it a better workable finished product absolutely reliable. The extra fineness welded into it allows MALABAR CLASSIC better coverage and finish in wall and roof plastering. This in turn, reduces paint consumption. 3. MALABAR AISWARYA It brings prosperity in many ways. It increases the life of your structures by safeguarding against sulphate attack. Aiswarya offers high quality at reduced price. Aiswarya generates less heat of hydration, reduces the formation of getting cracks. This product is best studied for constructions in soil and water with excess alkali metals, sulphates, alumina, iron and acidic waters. To obtain the best quality

cement, only glassy granulated slag is used for product manufacturing. With very low magnesium oxide content this provides shape stability for concrete structures.

The Making of Cement

MCL manufactures cement through the most modern dry process method based on world-renowned German technology. The major raw materials for cement manufacture are limestone and laterite, which are natural minerals obtained within the state. These raw materials provide all necessary ingredients of cement like lime, silica, alumina and iron oxide. The entire manufacturing process is computer controlled from a central control room and stringent quality control measures are applied at all stages of production. We are in the process of installing X - Ray Analyzer for better quality control. The state of the art pollution control measures like bag filters are also being installed. The process generally involves three stages of production. 1. Raw meal production. The limestone obtained from captive mines is enriched with higher quality limestone procured from nearby states as and when required. The raw mix normally contains 95% limestone and 5% laterite. The raw materials are crushed to around 20-25 mm size and the proportioned raw materials are ground in a ball mill in dry condition to a very fine powder. The resultant product is called raw meal and is stored in concrete silos where it is pneumatically homogenized to get a uniform product. 2. Clinker production Clinker is produced in a rotary kiln, which is a cylindrical steel shell of 65m length and diameter 4.2m, lined with refractory bricks. The kiln is inclined at 3% and set rotating at a speed of 2 2.2 rpm. It is provided with a 4-stage multi cyclone preheater system through which the homogenized raw meal is fed to the kiln inlet by means of belt bucket elevators. The Kiln is fired with pulverized coal and maintained at a temperature of about 14500C. In the pre-heater and kiln, the raw meal undergoes a series of physical as well as chemical changes giving rise to the cement minerals. The resultant product in nodular form obtained from the kiln is called clinker. Clinker is immediately quenched in the clinker cooler to stabilize its properties and stored in the clinker stockpile. 3. Cement production. Cement is produced by grinding clinker with 3-5% gypsum in a closed circuit ball mill to required fineness. Gypsum is added to control the setting properties of cement. Grinding clinker and gypsum produces ordinary Portland cement (OPC). Fly ash / Slag at required proportion is ground along with clinker and gypsum to produce Portland pozzolana cement (PPC) / Portland slag cement (PSC). The ground cement is stored in concrete silos and packed in 50 Kg bags using electronic packing machines. Infrastructure

Plant & Factory Details

The Geological Survey of India had identified a cement grade limestone deposit in the Walayar reserve forest way back in 1961-62. The Mineral Exploration Corporation Limited confirmed its efficacy. Malabar Cements Ltd., fully by the Government of Kerala, is the only Portland cement manufacturer in Kerala. The company was incorporated in April 1978 and commenced commercial production in 1984 with capital outlay of Rs. 680 million and paid up equity capital of Rs. 260 million. The 1200 TPD plant at Walayar has continuously registered profit year after year. The company has upgraded the plant with state-of-the-art technologies through the years. After the inception and in line with technological developments, company has carried out lot of modifications in the system for minimizing energy consumption, Pollution control measures, process modifications etc. Some of the salient features of the plants are listed below:

Limestone reserve of about 10 million tons. Modern 110 TPH Closed Circuit Cement Mill. Strict Quality Control system to ensure quality of the product. Most modern Instrumentation & Control system for efficient process engineering. Modern dry process manufacturing technology with four-stage suspension pre heater system. Elaborate pollution control system to meet pollution control standards.

Human Resources
MCL moves with a workforce of around 900+ dedicated and highly skilled personnel. As part of the commitment towards the society, MCL plays a very important role in generating employment for the general public. And, as a result, more than three thousand families depended on MCL indirectly, for their livelihood.

Manpower in MCL as on Jan2011

Category Managerial Non Managerial Total

Marketing Network

Plant 89 495 584

Mines 17 301 318

CGU 4 5 9

Total 110 801 911

Sales Depot
Malabar Cements Limited Mr. P Antochan Antony, Junior Markeing Officer, Cement Griding Unit, Pallipuram, Cherthala, Alappuzha- 688 541 Tel : 0478 2553417, 9446004754 Malabar Cements Limited Mr. Chandrasekharan M , Dy. Manager Marketing, Sales Office, Malabar Cements Limited, SEDC Building, Krishna Pillai Nagar P.O, Padnekkad, Kanhangad- 671 315, Kasargode Dist. Tel : 0497 2202880, 9446004755 Malabar Cements Limited Mr.Shaji T Balan , Asst. Sales Officer, Sales Office , Malabar Cements Limited, Alungal Complex, Opp. Town Hall, Tirur, Malappuram - 676 101 Tel : 0494 2421924, 9446004750 Malabar Cements Limited Mr. Saneer C P , Sales Officer, Malabar

Malabar Cements Limited Mr. Aboobacker Koya , Asst. Sales Officer, Sales Office, Malabar Cements Limited, 2nd Floor, KVR Towers, South Bazaar, Kannur- 670 002 Tel : 0497 2702026, 9446004764 Malabar Cements Limited Mr. Moideenkutty, Sales Officer, Sales

Office, Malabar Cements Limited, 9/1902, 2nd Floor, Bhajanakovil Road, Chalappuram, Calicut- 673 002 Tel : 0495 2300557, 9446004760 Malabar Cements Limited Mr. Jojo Lazar, Sales Officer, Sales Office, Malabar Cements Limited, City Castle Building, Ist Floor, East Fort, Thrissur- 680 005 Tel : 0487 2428246, 9446004758 Malabar Cements Limited Mr. P Antochan Antony, Junior Markeing Officer, Sales Office , Malabar Cements Limited, Door No. 878, Ward No. 13, Kodimatha, Kottayam- 686 039 Tel : 04812561680, 9446004754 Malabar Cements Limited Mr. Karthikeyan T K ( Office In Charge) J.G/3 Complex, 7/25, Palakkad Main Road Maniyakarar Thottam, Coimbatore- 641105 Tel : 0422 2656945
Responsibility

Cements Limited, Plant Office, Walayar Palakkad- 678 624 Tel : 0491 2862227, 9446004756 Malabar Cements Limited, Mr. Agash P Abraham, Asst. Sales Manager, Sales Office, Malabar Cements Limited, Kollamparambil Buildings, Opp. Karothkuzhi Hospital, Ernakulam Road, Alwaye- 683101 Tel : 0484 2625886, 9446004781 Malabar Cements Limited Mr. K P Sudheer K P , Sales Officer, Sales Office , Malabar Cements Limited, TC/25/3442, Vallivilla, Uppalam Road, Thiruvanthapuram- 695 001 Tel : 0471462550, 9446004761

Health & Safety

Malabar Cements is always committed to sustain development of health and safety working environment complying with all statutory requirements. We undertake various programmes, methods and initiatives towards this by adopting proactive safety approach rather than reactive ones. The plant uses sophisticated pollution control devices in various parts such as raw mill, cement kiln, coolers and cement mill. In addition, the mining technologies that have been implemented are also based on environment safeguard norms. Periodical inspection and assessment of working conditions is considered as the key tool for identifying hazards and risk involved in each activity. We give utmost importance to enhance competency of human resources by providing adequate awareness, training with the help of an established full fledged Training & Development department. We believe that safety is an integral part of all jobs and that can be achieved only through active participation and involvement of employees from all levels, from top to bottom. We promise workers participation in safety management by establishing Safety Apex Committee and departmental safety sub committees. These committees oversee the implementation of our OH & S policy. We practice Japanese 5S concept of house keeping to acheive excellence in maintaining clean and hygienic working conditions. Our keen attention is always to create a green & healthy environment. In its endeavor towards greenery, the company has initiated various types of afforestation, horticulture and tree planting programs. To comply withthe

numerous standards and norms stipulated in various statutes of environment conservation, timely Modernization plans are prepared and implemented.

Labour Welfare
It can be undoubtedly stated that our company is providing numerous measures both statutory and non-statutory when compared to neighbouring industries as well as other Public Sector Undertakings in the State. Here is the gist of welfare measures provided by the company. 1. CANTEEN Full-fledged round the clock canteen facilities are provided in plant and mines for employees on duty. These provide food at subsidised rates. 2. MEDICAL CENTRE AND AMBULANCE A full-fledged Medical Centre with two bed facility is situated in Township for the benefit of employees and their dependant family members and the treatment & medicine are provided free of cost. The services are rendered by two Medical Officers. Apart from Medical Centre one Ambulance each is provided at the Plant and Mines for meeting emergency medical assistance of the employees. 3.COMPLIMENTS & GIFTS Annual gifts are distributed among all employees in appreciation of their efforts in writing home good profit. During the last two years, 4 gms Gold Coin was issued to each employee as annual gift while a gold coin of 8 gms was gifted to each of the employees retiring on superannuation. Employees completing 25 years of regular services in the company were given 10 gms Gold Coin. Gifts are also given away to employees annually in connection with Safety Day Celebrations. 4.SCHOOL / FESTIVAL ADVANCE Interest free recoverable advances are paid to all employees in connection with Onam festival and School reopening. In addition to this festival advance is also paid 5.WELFARE FUND A welfare fund constituted by the company lends a helping hand to needy employees at times of financial crises. The Governing committee consists of Management as well as elected representatives of the workmen. Apart from financial assistance for treatment of specified diseases, retirement benefit, death benefit etc., the fund is also linked with Group Medical Insurance through which members and their dependents can avail cashless facility/ reimbursement for inpatient treatment. In the case of death, dependant benefit is also paid by the employer. 6.MEDICAL REIMBURSEMENT Medical Reimbursement to the tune of one month salary per year is provided to those employees who are not covered under the E.S.I. Act. 7.CEMENT AT SUBSIDY RATE Cement at subsidy rate is provided to employees who have completed 10 years of regular service, on request. On superannuation, employees are offered a cement agency subject to the rules and regulations applicable. 8.CONVEYANCE Conveyance facility on the Walayar Palakkad route is provided for the employees for their to and fro journey to attend duty. Free conveyance is also provided to school/ college going children of employees from township to Palakkad.

9.COMPASSIONATE EMPLOYMENT SCHEME This scheme provides employment in the company to the dependant of the employees die while in service. 10.ACCOMMODATION Family and bachelor accommodation is provided for the company employees. 11.EMPLOYEES CO-OPERATIVE SOCIETY An Employees Co-operative Society is functioning in Township with ample assistance from the Company. The Society is providing provisions, stationary items etc. to the employees on credit, which will be deducted from their salary. 12.EMPLOYEES RECREATION CLUB & LIBRARY A recreation club is working to boost the creative talents of employees and their children in the field of arts and sports. A full-fledged Library graded as A by State Library Council is also functioning in the Township. 13.COMMUNITY HALL A community hall with a seating capacity of more than 300 is constructed in the Township. The community hall is used as Indoor Stadium also for games like Badminton, Table Tennis, Carroms etc.

Social Welfare
Every industrial establishment especially profit making Public Sector Undertakings have major role in the social upliftment of surrounding population and Malabar Cements Limited is fulfilling it in a unique way. NADUPATHY TRIBAL COLONY : The company has adopted the tribal school in the Nadupathy Colony for the total upliftment of the tribal community. CORPORATE SOCIAL RESPONSIBILITY 1.Streetlights Street light with electrical connection from the company line is provided through NH from Chandrapuram Check post to Township covering around 3 kms. 2.Special Block at Medical College A block was at Calicut Medical College was renovated by MCL in the year 2010 3.Afforestation in mines As part of our commitment to the mother earth we have implemented an Afforestation Programme in our Mines

Raw Material Specifications

Title
Limestone Laterite Indian Coal Imported Coal Gypsum Dry Fly ash

Description
TC 82% (Min), SiO2 14 % (Max) SiO2 10 % (Max), Al2O3 37 % (Min), Fe2O3 30 % (Min) C Grade Coal Ash 15 % (Max), VM 30 % (Max), Sulpher 01% (Max) Purity as CaSo4.2H2O 82% (Min) As per IS: 3812

Annual requirement