Raw Material Division

\Kerala SIDCO Ltd. has been in the field of development of the MSME sector for the last four decades.  Established in 1976, we have been providing assistance to the SSI units by making available the infrastructure, supplying the Raw Materials required for them and also marketing their products.  For an effective functioning we have District level offices in all the 14 districts in our State. Besides, the MSME units we have been supplying materials to Govt. Departments, P.S.Us etc.
Raw Material Division is one among the important divisions of Kerala SIDCO, with Head Quarters in Ernakulam.  Through this Division SIDCO provides assistance to the MSME sector by making available raw materials required.  For an effective functioning of this Division has one Raw Material Depot each in all the 14 districts.  Through these 14 District offices a large number of MSME units are served by SIDCO.  
The performance of Raw Material Division for the last five years.
2006-07    26 Cr.
2007-08    21 Cr.
2008-09    49 Cr.
2009-10    41 Cr.
2010-11     54 Cr.
During the year 2011-12  up to Decemner 2011 this Division achieved a Turnover of 44 Cr.
(Graph)
Turnover year
For the coming years we plan to have a progressive increase in our business turnover
-2-

We supply materials like Iron and Steel, Wax, Titanium Dioxide, Cement, Bitumen and Lubricants, etc.   Our suppliers are SAIL,VSP, CPCL, BPCL, HPCL MRPL, Chettinadu Cements, India cements ad other main dealers of the major manufacturers.
Our customer list includes PSUs like KMML, Plantation Corporation of Kerala Limited, HNL, Cochin Shipyard Ltd. etc. Nirmithi Kendra, Local Bodies etc.

Major activity undertaken in the past
1982       Imported Cement to meet the crisis in the construction sector in Kerala

1986    SIDCO Consortium implemented Bus Body Building Project for KSRTC

2006         Imported Paraffin Wax from China, for Candle ManufacturingUnits, under
JDRGA Scheme.

Present Activity
Iron & Steel
SIDCO is getting allocation for steel materials from the Ministry of Steel for the State of Kerala, to cater the needs of the SSI (now MSME) sector. We also supply these materials to the Govt. Departments, PSUs, etc.  SAIL and VSP major central PSUs  are providing the  steel  material to SIDCO on monthly quota basis .
In order to meet the growing demand  of the customers we have enlisted suppliers, who are wholesale Dealers/ Distributors of the manufacturers like TATA Steel,  ESSAR etc. enerally the supplies are made to the PSUs.
During the previous year the business in steel was worth Rs. 773 lakh, which comes 14% of the total turnover.


Paraffin Wax
Supply  of the  Paraffin wax from  Chennai Petroleum Corporation Limited ( CPCL) for candle manufacturing  is done through Kerala SIDCO only. By arranging wax to the MSME  units, who are engaged candle manufacturing, which are mainly micro units of MSME sector,consists of self employed women, handicapped persons and other weaker sections of the society, SIDCO is providing a helping hand for the upliftment of the society by ensuring quality rawmaterial at nominal rate.
During the previous year the business in Paraffin Wax was worth Rs.2642 lakh, which comes 49 % of the total turnover.                                                                 

Bitumen
From the year 1999 onwards R.M. Division is supplying Bitumen, to the LSGDs and others government institutions.  The bitumen is supplied to Panchayaths,Municipalities and Corporation at the same rate of the Majorpublic sector  Oil  companies only ,more over we are arranging site delivery through the transporting contractor appointed by us.  For ensuring  uninterrupted supply to the customers we have made business tie ups with major public sector Oil companies like BPCL, HPCL and MRPL.SIDCO is committed  in time bound delivery of bitumen to the LSGD’S to the maximum possible extent.                                     
During the previous year we supplied 5612 MT Bitumen,   which comes
35 % (1894 lakh) of the total turnover of R.M. Division.

Cement
The major supply in Cement is from M/s. Chettinad Cement Corporation Limited. We have also made tie-up with M/s. India Cements.  The supplies are done under non trade category, for project works of Govt. Institutionsand autonomous bodies
During the previous year the business in Cement was worth Rs.75 lakh, which comes 1.4% of the total turnover of R.M. Division.  

Other Rawmaterials
Besides these major items the R.M. Division is supplying Tio2 from Travancore Titanaium (P) Ltd,(TTPL)Thiruvanathapuram , Lubricants of  Hiindustan Petroeleum Corporation Limited (HPCL ), Paint, Pipes, Agricultural Implements and other rawmaterial based on demand from Government Department, MSME sector,PSU and other Autonomous Institutions

Staff Strength
This Division has 60 numbers of permanent employees and 25  temporary employees in the Division Office in Ernakulam and in the 14 District Depots

Serving the State and MSME sector
SIDCO rawmaterialo division act as  catalyst in  MSME  Sector   in generating business and thereby  increase the job opportunities which in turn will help the total development of the society in our State.
Sidco rawmaterials division ensure quality rawmaterials with to MSME sector at nominal rates and therby safegauard the MSME sector from exploitation from other private suppliers and inturn benefits the MSME sector in stabilizing their business with quality products.
Sidco is committed in supply of proper quality of bitumen in proper quantity from BPCL,HPCL and MRPL to LSGD  and thereby ensure proper bitumen supply which inturn benefits the infrastructure development activities of the LSGD s and the state to the maximun.

Sidco Rawmaterial division  is contributing Rs 2.5 Cr  to the State Exchequer by way of  tax every year.