Irony of Life – Life Comes To Full Circle

Slow Down: Recession, Cost Cutting, Salary Freeze, but who really understands the Running Cost?!

Recently visited one of the old client in Gujarat after a long gap.

The client is in a very challenging business. Their final product faces serious price war for almost 8 months out of 12 months of a year.

(As their product is a by-product of some giant manufacturers in non-ferrous stream).

Our association with this client was ended from our side as we had withdrawn unilaterally due to huge delay in payment schedule. (They became thick skinned & their slogan began that “payable when able”….but “able” never become reality!!)

In the last few years they have added conventional PVC – FRP cooling towers of lowest quality & pricing for their process. The fan hp is around 52.5 HP. Many of fan cooling towers are running either without fills (absolutely no fills) or chocked fills.

The power plant designed for 2.5 MW is now running only at 1 MW due to “Steam Economics” vis-a-vis grid power.

Ironically all the five fan cooling towers are running with 75 HP power (even for this reduced heat load)

In all = 127.5 HP power with minimum rate of Rs 8 per unit is continuously being run & still they are not getting temperatures during summer and monsoon season.

Only Fan Power Running Cost:

They are spending approximately 60,00,000 (60 lacs) per annum on electricity just to run the cooling towers.

Due to perennial cash flow problems they are not able to maintain these cooling towers & are even running cooling towers without fills!!? (Yes, only body-fan-motor-water is sprayed:)

Does any one really understand the running cost or actual ownership cost of any equipment??

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