Corporate Initiative (1)

I am writing about a win-win situation of a manufacturer-seller and a manufacturer-buyer and I have made significant contribution to this. The manufacturer-seller is Bombay Dyeing, which is a corporate group manufacturing Textiles and Chemicals. The manufacturer-buyer, Century Enka Limited, a corporate group using the chemical namely Di Methyl Terephthalate which it purchased from Bombay Dyeing as an input for their finished product Polyester Filament Yarn. Polyester Filament Yarn is made out of 2 major raw materials namely Di Methyl Terephthalate and Mono Ethylene Glycol. In commercial terms they are called DMT and MEG. Polyester Filament Yarn is used to make Sarees, Textiles, fabrics and a host of related things.

Now I am giving the details. Both the corporates had taken initiatives which resulted in cost saving of the input raw material, packing and consequently Polyesters Filament Yarn. The initiatives were taken less than a decade ago. Earlier the supply of the input from Bombay Dyeing was in 25 kg bags.  Bombay Dyeing is the only Indian manufacturer of DMT. Their factory manufacturing DMT was located in Patalganga close to Mumbai and Century Enka Limited plant was located in Bhosari near Pune. The distance between the two plants was around 130km.

Bombay Dyeing had first taken the initiative to supply DMT in molten condition. The DMT was in that condition prior to drying to powder form and packing. The problems to supply in molten condition were:

1)             To transport the materials  in molten conditions keeping  it at 1600C,

2)             Ghat sections between Bombay and Pune

3)             The buyer Century Enka has to modify the equipment to receive DMT in molten condition.

4)             DMT in molten state had to be transported within 6 hours.

Century Enka had inspected their equipment and found the suitability of modification to receive molten DMT. They were also prepared to bear the cost of modification.

Transportation of molten DMT within six hours was possible.

There was difficulty to transport molten DMT over the ghats in a regular tanker, because the liquid may come to the back of the tanker and may turn the tanker upside down resulting in a serious accident. This problem was solved by the technical department of Bombay Dyeing by making six compartments in the tanker and filling up DMT in molten condition in the six compartments in equal quantities. The liquid therefore was not coming to one side but was remaining in each compartment. As a result the tankers were able to cross the ghats normally like any other truck.

The supplier was ready with the number of tankers required for the purpose and the buyer i.e. Century Enka Limited had also completed the modification. The supply in molten condition was started by Bombay Dyeing and the buyer Century Enka Limited was able to use it successfully.

The Total savings on account of these initiatives by both the buyer and seller was Rs 8.6 crores per annum. This amount was equally shared by Bombay Dyeing and Century Enka Limited and accordingly the procurement price was reduced.