RNCOS Research Indian State Electricity Boards Biggest Contributor to CIL`s Woes

Released on = June 15, 2006, 4:16 am

Press Release Author = RNCOS

Industry = Industrial

Press Release Summary = RNCOS Research: (http://www.rncos.com/Report/IM0371.htm) CIL
is the world's second largest coal supplier and the largest corporate employer in
India. This owes mainly to its improved functioning and transparency in operations.

Press Release Body = RNCOS Research: (http://www.rncos.com/Report/IM0371.htm) Coal
India Limited has many advantages. It is a large company with an appropriate
infrastructure. Currently its coal output is about 300 million tones. In 2004-05 it
acquired a turnover of about Rs.306.60 billion. And to add on to everything it does
not fear expulsion from the market by private investors even if they have a large
contribution in the domestic coal-mining sector.

CIL ranks second largest in world coal supply. At home it is the biggest corporate
employer having strength of 462,000 people. Financially too it is strong occupying a
position among the largest five companies in the country. In the fiscal 2005-06, CIL
earned a net profit of more than Rs. 6,100 crore, a 43% increase over fiscal
2004-05.

CIL's present level of performance is attributed to the improved functioning at the
mine level as also the transparency it has imbibed in its operations and tendering
process.

Other factors that contribute to the company's achievements are large reserve of
resources enabling large-scale production, greater sales security, expanded growth,
skilled and trained workforce, experienced and supportive management, healthy
relations between union and management, and cordial relations with customers.

RNCOS, in their market research publication of "Indian Coal Industry: Opportunities
for Growth (2006)" reveals that CIL's weaknesses lie in its foreseeable financial
crisis further added with its major consumers, State Electricity Boards (SEBs)
already undergoing financial difficulties.

Some other deficiencies include:
· Coal output with a high ash content.
· Major consumers located at a distance.
· Old mines still in possession.
· Too many working people.
· Limited ability in relocating manpower.

Surprisingly these are in contrary to the strengths that the company exudes in terms
of proven reserve, supportive trade unions, and cooperative clients.

The market research report provides an in-depth analysis of the present scenario and
future forecast of the Indian coal industry. It also gives an overview of the Indian
coal sector with focus on performance of its key players.

The report enumerates a global analysis of coal production and consumption, a
comparison between the world scenario and Indian coal sector. There is also
discussion of emerging trends and developments and about new coal projects.

About RNCOS:
RNCOS, incorporated in 2002, provides Market Research Reports for your business
needs and aims to put an end to your information pursuit. Our expertise in gathering
global business information for industry research, corporate training, growth
consulting, and business consulting, brings reputed companies and firms to us for
business enhancement solutions. We can be your one-stop-shop for Industry research
information and niche market analysis.

To purchase your copy: http://www.rncos.com/Report/IM0371.htm
For more information about the report please visit www.rncos.com


Web Site = http://www.rncos.com

Contact Details = RNCOS
Shushmul Maheshwari
Head of Business Development
29, 1st Floor, Patparganj Industrial area, Delhi 92
91-11-4214-1229
info@rncos.com

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