History of Panyam Cements
Since the performance of the Company was not encouraging and started making losses from 1985-86 onwards due to sluggish market of cement and also severe competition in Engineering products. In 1988 PANYAM was became sick and the management of the company was taken over by late M.V. Subba Rao and Associates. M.V. Subba Rao and Associates have taken various steps to improve the profitability of the company which has yielded results wiping out the accumulated losses and the company reported excellent performance in the years 1996-97 and 1997-98.
However, the Cement Industry went through severe crisis in 1999 consequent to the liberalization policy announced by the Government of India. In addition, due to paucity of working capital finance, the Cement Unit could not run continuously to its capacity due to various reasons.
Considering the worst situation prevailing in Panyam Cements as the workmen were striving hard for their livelihood, Sri S.P.Y. Reddy, B.E.(Mech) & Member of Parliament, who is a seasoned and successful technocrat having proven track record of more than 30 years as Chairman of Nandi Group of Companies has taken over the management of the company during September 2004 being assisted by Sri S. Sreedhar Reddy, an Engineering Graduate in Electronics and Telecommunications as Managing Director & CEO of the Company. The present management has invested amount for restarting the operations of the company. Immediately after take over the unit, the new management has settled the dues of Financial Institutions/Banks and also settled the dues of the workmen by implementing VRS. The present management has put in best efforts to revive the unit and put the same back on rails.
As stated above has 20.8 acres of prime land at Bommanahalli, Bangalore on Bangalore to Hosur National Highway adjoining the main road. The said land is situated at prime location and it is useful for residential flats on the rear side. Further, the operations at the Engineering Division was suspended from September 2005 due to spiraling increase in the cost of raw materials and other inputs and also due to cheaper imports of finished products and to relieve the workmen under VRS..
The built up area comes to 2.87 million sft. The company has entered into an agreement with M/s. Salarpuria Developers (P) Limited for developing the land under joint development considering the boom in the real estate. The company has received advances from the prospective buyers against the company’s proportionate share under joint development and the same was utilized for settlement of dues of banks/ secured creditors, payment of VRS dues etc.
The company has taken up modernization of Kiln No.1 by enhancing the capacity of the said kiln to 2000 M. Tonnes. After trial runs and initial teething problems, the output has started from the kiln. The project has started the commercial production from 10th August, 2011. After completion of the Modernisation Scheme, . The present capacity of the cement plant is 3000 M.Tonnes per day. The project was financed by Indian Overseas Bank, Adarshnagar, Hyderabad and State Bank of Hyderabad, Overseas Branch, Somajiguda, Hyderabad.