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    INDUSTRY ANALYSIS

    FERRO ALLOYS SECTOR:

    Steel is the most versatile material which has made the progress in every aspect on this earth

    possible There are h!ndreds o" varieties o" steel beca!se "or each application it has to bemade with speci"ic properties to get the most optim!m !sage #t is well $nown that the basic

    constit!ent o" steel is iron %!t it is the proportion o" other elements in it& which give each

    type o" steel certain speci"ic properties These elements are added in li'!id iron in "orm o"

    Ferro alloys to get the desired composition and properties Th!s& Ferro alloys are important

    additives in the prod!ction o" steel #t can be said that no steel can be made witho!t !se o"

    one or more o" the several Ferro alloys They "orm the bac$bone o" steel Th!s& the Ferro

    alloys ind!stry is vitally lin$ed "or its growth and development to that o" the steel ind!stry

    Name ofFerro Alloy

    Manganese%

    Chromium%

    Silicon%

    Carbon%

    Phosphorous%

    Sulphur%

    Others%

    Ferrous%

    FerroManganese

    70 min -- 1!ma"

    # ma" 0$! ma" 00ma"

    -- &alance

    SilicoManganese

    '0 min -- 1! min ( ma" 0$0 ma" 00$ma"

    -- &alance

    Ferro Chrome -- '0 min ma" # ma" 00$ ma" 00$ma"

    -- &alance

    Ferro Silicon -- -- 70 min 1!ma"

    00! ma" 00!ma"

    )l*1(!ma"

    &alance

    Ferro alloys are compo!nds o" iron and other elements li$e manganese& silicon& chromi!m

    Ferro alloys are !sed in the prod!ction o" steel and iron to increase their strength& hardness

    and resistance to corrosion They also act as power"!l deo(idi)ing and p!ri"ying agents Ferro

    alloys have varying percentages o" iron and carbon and elements li$e manganese& silicon etc

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    As it is not cost e""ective to obtain these elements in their p!re state& they are !sed instead in

    alloy "orms Ferro alloys are !sed as additives d!ring the steel re"ining process

    *an!"act!ring +rocess:

    Ferro alloys are man!"act!red by charging pre,determined '!antities o" raw materials

    consisting o" ores& red!ctants and "l!(es into s!bmerged electric arc "!rnaces The mi( o"

    raw materials& comprising ores& "l!(es and red!ctants& depends on the speci"ication o" the

    Ferro alloy to be prod!ced

    -igh c!rrents at low voltage are passed thro!gh the three electrodes o" the "!rnace and the

    charge o" raw materials The resistance o""ered by the raw materials to the "low o" electricity

    creates immense heat& res!lting in smelting o" the raw materials charged into the "!rnace and

    the conse'!ent metall!rgical reactions

    Carbon in the red!ctant reacts with the o(ides in the ores The metallic content o" the ore

    .being manganese& chromi!m& iron or silicon/ "orms a Ferro alloy while the other materials

    become slag %oth the Ferro alloy and the slag will be in li'!id "orm d!e to the high

    temperat!re in the "!rnace bath As slag is lighter than li'!id metal& it "loats to the top

    At periodic intervals& the molten metal and slag are tapped "rom the "!rnace bath thro!gh a

    tap hole #n the case o" Ferro chrome and Silico*anganese& the li'!id slag is gran!lated by

    impingement against a water 0et The gran!lated slag is !sed "or man!"act!re o" "ly ash bric$s

    and concrete rings

    The Ferro alloy in li'!id "orm is collected in a ladle and cast into mo!lds in a contin!o!s

    casting machine as slabs or ca$es A"ter cooling& these slabs and ca$es are bro$en down to

    the si)e speci"ied by the c!stomer& depending on the metall!rgical practices "ollowed by the

    c!stomer

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    The si)ed material is generally pac$ed in 1 tonne or 23 $g bags each "or sale into the

    domestic 4 e(port mar$ets as per the re'!irement o" the b!yer The despatches to the %!yers

    in the domestic mar$et are made by tr!c$s& whereas "or e(ports& shipments are made by

    containers

    The Indian Ferro Alloy Producers Association (IFAPA):

    The Ferro Alloy prod!ction in #ndia thro!gh s!bmerged arc "!rnace ro!te made a beginning

    in late 1523s The b!l$ and noble Ferro Alloy +rod!cers in the co!ntry "ormed as an

    association& vi)& 6The #ndian Ferro Alloy +rod!cers7 Association8 .#FA+A/& in 1591 to loo$

    a"ter the interest o" its *embers #nitially it started with 2 *embers and has now grown to

    over 133 *embers

    The capacity o" the #nd!stry is estimated at 9; million tonnes till 1 st *arch&

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    The #FA+A periodically organises national and international con"erences to "acilitate Ferro

    Alloy prod!cers in several co!ntries to interact and share technical $nowhow

    The ma0or Ferro Alloys prod!cing co!ntries are So!th A"rica& a)a$hstan& @$raine& China&

    #ndia& France& A!stralia& T!r$ey& >abon& and @SA

    #S#O= A=? *#SS#O= OF =AA %-ARAT E=T@RES L#*#TE?:

    ision:

    will be a dependable so!rce o" prod!cts and services e(ceeding o!r c!stomer7s

    e(pectations

    will add best val!e to o!r inp!ts and strive to protect the environment in all o!r

    endeavo!rs

    *ission:

    will contin!e to man!"act!re prod!cts at less cost& "!l"il stricter '!ality demands and

    "ind sol!tions to the limitations o" energy and raw materials as well as environmental

    constraints

    will improve o!r competencies thro!gh innovation and contin!o!s learning

    COR+ORATE +ROF#LE:

    >eneral and history:

    =ava %harat ent!res Limited .=%/ is a b!siness conglomerate with interests in power

    generation& Ferro alloys& mining and s!gar with m!lti,national operations spread over #ndia&

    So!th East Asia and A"rica The Company is listed on %SE and =SE

    =ava %harat ent!res Limited is a Company incorporated in the year 15

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    Over the past years& the company e(panded its capacity and prod!ct range in Ferro alloys

    and emerged as a leading man!"act!rer e(porter o" Ferro alloys in #ndia The company

    diversi"ied into s!gar and downstream prod!cts as well as power generation and mining

    Apart "rom domestic operations& the company has spread its b!siness activities to A"rica and

    So!th East Asia The company has ac'!ired a ma0ority e'!ity sta$e in *aamba Collieries

    Limited& Gambia7s largest coal mining company& in

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    usiness descri!tion and !roduction "acilities:

    =% man!"act!res manganese and chromi!m alloys which are essential inp!ts "or the

    man!"act!ring o" steel *anganese and Silicon alloys are added to iron to provide strength

    and hardness& and also act as power"!l deo(idi)ing agents Chromi!m alloys provide heat andcorrosion resistance to steel

    =% c!rrently have two Ferro alloy plants: the Telangana +lant and the Odisha+lantAll the

    smelters in the Telangana +lant and the Odisha +lant have the "le(ibility to prod!ce a variety

    o" alloys li$e manganese alloys& chromi!m alloys and silicon alloys =% have earmar$ed

    the Telangana +lant "or manganese J silicon alloys and the Odisha +lant "or chromi!m alloys

    "or better coordination o" the transportation logistics o" the relevant raw materials and

    "inished prod!cts to and "rom the respective plants

    The Telan#anaPlant

    The Telangana+lant& located at +aloncha& hammam districtcommenced operations in 152

    with one smelter o" 192 *A prod!cing Ferro Silicon with an ann!al capacity o" 13&333

    tonnes The second smelter o" same capacity was installed in 159and the third smelter& again

    o" same capacity& in 15 As per mar$et demand& =% started prod!ction o"

    Silico*anganese and Ferro *anganese in 155 The capacity was e(panded "!rther by

    installing the "o!rth smelter o"

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    The Odisha +lant was set !p primarily to man!"act!re Ferro Chrome !sing chrome ore "rom

    the S!$inda mines&Odisha The mines& which are located appro(imately 3 $m "rom the

    plant& are considered the best so!rce o" chrome ore in #ndia Finished prod!cts prod!ced by

    the Odisha +lant are dispatched to domestic stainless steel man!"act!rers and e(portedthro!gh the +aradip and isa$hapatnam sea ports

    The prod!ction o" Ferro alloys is a power intensive process The "ollowing table shows the

    appro(imate '!ant!m o" energy re'!ired to prod!ce per tonne o" alloy:

    Ferro Alloy %ner#y consu&!tion ('h*T)

    Ferro *anganese &133

    Silico *anganese ;&233

    Ferro Chrome ;&overnment o" #ndia& *inistry o" Commerce have certi"ied =% as a 6Recognised E(port

    -o!se8

    +OHER:

    >eneration and sale o" power is one o" the "oc!s areas o"N+sb!siness The Company has

    established pit,head& coal "ired thermal power plants in the States o" Telangana and Odisha in

    #ndia

    The power plants employ eco,"riendly technology and operate at Plant Load Factors a,o-e

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    ./0 Conservation o" energy and nat!ral reso!rces li$e water is a core philosophy at all the

    power plants o" the Company The selection o" e'!ipment and operating practices re"lect this

    philosophy

    The Company has a competent and committed team o" pro"essionals "rom the power sector

    with in,depth e(perience in constr!ction& operation and maintenance o" power plants The

    power generated is sold to distrib!tion licensees thro!gh trading licensees +art o" the power

    generated is !tili)ed internally "or prod!ction o" Ferro alloys

    Telan#ana Plants

    The "irst power plant o" =% was commissioned at +aloncha& hammam district& ad0acent

    to its Ferro Alloy +lant in 155 with a capacity o" 3 *H The capacity was s!bse'!ently

    e(panded to 23 *H in

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    Location: +aloncha& hammam district

    Fuel :Coal

    3a!acity: 11; *H

    Po1er Plant in $disha2 India

    Location: haragprasad village& ?hen$anal district

    Fuel :Coal

    3a!acity: 456*H

    io&ass Po1er Plants in Andhra Pradesh2 India

    Location: ?harmavaram& East >odavari district& A+

    Fuel :Coal& %agasse

    3a!acity:

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    Location: Samal$ot& East >odavari district& A+

    Fuel :%agasse& a non,"ossil "!el

    3a!acity: 5 *H

    A##re#ate $!eratin# 3a!acity: 7/4 *

    FERRO ALLOYS:

    Ferro Alloys are !sed as inp!ts in the man!"act!re o" iron and steel "or removal o" o(ygen

    and imparting speci"ic properties These are alloys o" iron and elements li$e manganese&

    silicon& chromi!m& etc

    Hhile manganese and silicon alloys impart strength and hardness and act as power"!l

    deo(idi)ing agents& chromi!m alloys ma$e steel resistant to corrosion and heatTypical e(amples o" end prod!cts comprise rail road rails& str!ct!ral steel& a!tomobile bodies&

    etc "or manganese alloys and stainless steel !tensils& c!tlery& watch bodies& dairy e'!ipment&

    hand railings& etc "or chro&iu& alloys

    Silico *an#anese Ferro *an#anese

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    http://www.nbventures.com/index.php?option=com_content&view=article&id=12&Itemid=20http://www.nbventures.com/index.php?option=com_content&view=article&id=12&Itemid=20http://www.nbventures.com/index.php?option=com_content&view=article&id=12&Itemid=20
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    Ferro 3hro&e

    +ARI$US PLANTS:Alloy Plant in Andhra Pradesh2 India

    Location :+aloncha& hammam district& Telangana

    S&elters : ( 192 *A 4 1 (

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    S@>AR A=? %Y,+RO?@CTS:

    =% operates a state,o",the,art& energy e""icient s!gar plant located at Samal$ot& Andhra

    +radesh& #ndia with a ca!acity o" 75// tonneso" cane crushed !er dayand prod!ces '!ality

    white crystal s!gar with 89 to 86 I3U*SA colour The plant is located in close pro(imity to

    isa$hapatnam and a$inada seaports& "acilitating e(ports to overseas clientele

    #mplementation o" several innovative meas!res "or energy conservation is a constant

    endeavo!r at this plant& in recognition o" which it has been accorded =ational Award "or

    E(cellence in Energy *anagement as E(cellent Energy E""icient @nit "rom Con"ederation o"

    #ndian #nd!stry "or the past "o!r consec!tive years

    =% diversi"ied into s!gar b!siness in 153 by ac'!isition o" a s!gar plant located at

    Samal$ot& East >odavari district& A+ Since then& the s!gar plant has !ndergone

    moderni)ation with its capacity increased in phases to &233 TC? Today& the plant has

    earned the distinction o" being one o" the most energy e""icient s!gar plants in the world

    The S!gar +lant is strategically located at a distance o" less than

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    The Company is ta$ing several steps to enco!rage and s!stain cane development:

    Establishment o" Ananda Iyothi& a cl!b o" small& marginal and

    landless "armers "or improving their socio economic conditions

    Arranging "inancial assistance to "armers thro!gh ban$s and chemicals

    and "arm implements on s!bsidy thro!gh the Cane ?evelopment Co!ncil

    Establishment o" =ava %harat Comm!nity College .in a""iliation with

    #ndira >andhi =ational Open @niversity/ at Samal$ot as an #ntegrated Farmer7s Service

    Centre to help r!ral yo!th "rom "arming comm!nity to develop s$ills in c!ltivation o" crops

    li$e s!gar cane to start with

    #nter cropping in s!garcane to bene"it the "armer with additional

    interim income

    >reen man!ring by raising traditional crops with ?habol$ar method o"

    inter cropping to improve the content o" organic matter in the soil

    *echani)ation in cane c!ltivation

    Trash m!lching to conserve soil moist!re& red!ce weed growth and

    mitigate incidence o" early shoot borer

    Enco!raging single b!d n!rsery to red!ce seed cost

    Facilitating drip irrigation to conserve water

    #ntrod!ction o" bio control meas!res "or the cane crop to red!ce !sage

    o" pesticides in tac$ling borer problems

    S!pplying enriched bio,earth to "armers "or s!bstit!ting chemical

    "ertili)ers

    +romoting !se o" vermicompost by organi)ing s!bsidies thro!gh the

    Cane ?evelopment Co!ncil

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    ?eveloping r!ral roads and lin$ roads "or easy transportation o" cane

    "rom "armersM "ields to the plant

    Do1nstrea& Products

    The distillery attached to the s!gar plant o" =% at Samal$ot prod!ces 9 &illion ,ul' litres

    !er annu&o" Recti"ied Spirit& a by,prod!ct o" s!gar man!"act!re This is "!rther processed

    into%tra Neutral Alcohol (%NA)

    *#=#=>:

    The company presently "oc!ses on coal mining tho!gh it is e(ploring mining o" otherminerals as well

    Coal is a comb!stible& sedimentary& organic roc$ "ormed "rom ancient vegetation& layered

    between other sedimentary roc$s and "o!nd in seams ranging in thic$ness "rom a "ew

    millimeters to many meters #t "inds !se in metall!rgical ind!stries as red!ctant and in

    cement& power and chemical plants& breweries& etc as "!el

    Coal is e(tracted by s!r"ace mining in open cast mines or by !ndergro!nd mining depending

    on the depth at which the coal seams occ!r *any varieties o" coal e(tracted "rom both

    s!r"ace and !ndergro!nd mines re'!ire washing in a coal preparation plant

    ;a&,ia

    *aamba Collieries Limited .*CL/& the largest coal mining company in Gambia& in which

    =ava %harat holds 92D e'!ity sta$e& prod!ces coal by open pit method at *aamba !sing

    state,o",the,art& -eavy Earth *oving E'!ipment The estimated coal reserves o" this mine

    stand at 1

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    %!siness Overview:

    =% is a modern b!siness organi)ation committed to delivering !tmost val!e and serving all

    its sta$eholders The Company strives to "ollow the best b!siness practices in sa"ety& ethical

    b!siness& social development 4 environmental protection "or s!stainable development The

    Company has prod!ced consistent long term res!lts and rewarded its shareholders with

    !ninterr!pted dividends since inception

    Strategy:

    =%7s primary ob0ective is to ma(imi)e ret!rns to investors by operating b!sinesses in areas

    where the Company has a competitive advantage The core strength o" the Company lies in

    green operations& harnessing modern and e""icient technologies and committed and competent

    h!man reso!rces

    *anagement overview:

    The Company is managed by the %oard o" ?irectors assisted by team o" Senior *anagement

    E(ec!tives

    STOC #=FOR*AT#O=:

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    ,ii.en.s*

    /he Compan has a recor. of uninterrupte. .ii.en.s since 17'

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    23)4I/5*

    =% is a c!stomer centric organi)ation& constantly striving "or c!stomer delight thro!gh

    '!ality o" its prod!cts and related services

    The company7s commitment to '!ality begins the moment a c!stomer en'!iry is received

    =% ma$es all e""orts to !nderstand the stated as well as !nstated re'!irement s o" the

    c!stomer and programs all its activities comprising order acceptance& man!"act!re and

    delivery o" prod!cts to satis"y these re'!irements

    To maintain high '!ality o" prod!cts and improve c!stomer satis"action& the company "ollows

    K!ality *anagement Systems certi"ied toIS$ .//4

    The company7s K!ality Ass!rance Laboratories e'!ipped with state,o",the,art testing

    "acilities and operated by well trained sta"" ens!re consistent and high '!ality o" inp!ts&

    processes and o!tgoing prod!cts Statistical K!ality Control techni'!es "orti"y the '!ality

    ass!rance e""orts

    The Iapanese techni'!e o" 5

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    *easures ta'en to &ini&i=e Pollution:

    Air

    The $ey "oc!s "or minimi)ing air poll!tion is on low concentration o" partic!late matter&adherence to emission norms and d!st s!ppression

    %coouses:Each "erro alloy smelter is connected to a dedicated "ilter bag ho!se

    which allows only clean gases containing partic!late matter "ar below prescribed limits to

    escape into the atmosphere

    %esides these& e""ective meas!res are ta$en "or control o" "!gitive emissions and "or d!st

    s!ppression at vario!s material handling and processing areas

    HATER:

    SOL#? HASTE:

    Apart "rom the above meas!res& development and maintenance o" green belt beyond the

    stat!tory re'!irements is a reg!lar practice at all the man!"act!ring "acilities o" the company

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    The Environmental *anagement System "ollowed by =% is certi"ied as per IS$ 4?//4

    ENEC@T#E TEA*:

    The oard o" Directorso" the company consist o" pro"essionals with e(pertise in "!nctions

    li$e "inance& operations& b!siness development& corporate planning& strategic management&etc Hith a rich bac$gro!nd in diverse sectors li$e power& "erro alloys& steel& s!gar and

    ban$ing& the %oard spearheads the companyMs growth and all ro!nd per"ormance

    The %oard is assisted by a team o" well e(perienced senior management e(ec!tives

    oard o" Directors

    D@ Asho'2 .Chairman/ Dr@ %@ R@ 3@ She'ar2 . ?irector/

    P@ T@ +i'ra& Prasad2 .*anaging ?irector/ Dr@ *@ +@ @ Rao2 .?irector/

    D@ Ash1in2 .?irector 4 CEO& =ava %harat

    .Singapore/ +te Limited/

    B@ alara&aReddi2 .?irector/

    Dr@ D@ N@ Rao2 .?irector/

    @ R@ B@ Prasad2 .E(ec!tive ?irector/

    3@ +@ Dur#a Prasad2 .?irector , %!siness

    ?evelopment/?r C *adhavi& .?irector/

    Senior *ana#e&ent Tea&

    P@ C@ +@ Sar&a2 .Senior E(ec!tive ice+resident , Strategy 4 +lanning/ 6enata 8ao.E(ec!tive ice +resident BTelangana @nit/

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    C@ Ra&esh2 .E(ec!tive ice +resident , Odisha

    @nit/

    *@ Su,rah&anya&2 .Company Secretary 4

    ice +resident/

    A@S@N@ *urthy2 . ice +resident/ N@ Pra,ha'ar2 . ice +resident , S!gar

    ?ivision/

    COR+ORATE ?#RECTORY:

    Na-a harat +entures Li&ited

    =ava %harat Chambers

    Ra0 %havan Road

    -Y?ERA%A? B 233 3%ALT>

    The health initiatives aim at creating awareness and improving health standards o" r!ral poor

    thro!gh providing "acilities and reaching '!ality health care in the areas o" general medicine&

    eye care& dental care& etc

    *eas!res implemented:

    3onductin# *edical 3a&!s

    *any people in r!ral areas live in !nhygienic conditions and s!""er "rom general ailments

    as well as chronic diseases d!e to lac$ o" awareness and necessary medical help =% has

    been organi)ing mega medical camps to mitigate this problem *edical e(perts in

    ophthalmology& dental care& dermatology& gynecology& paediatrics& etc and general

    physicians render "ree medical services in these camps *ore than

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    assistance "or initial recr!itment o" sta"" and trainees The design& complete management

    and development o" the Eye Care Centre on a s!stainable basis will be the responsibility o"

    L+E#

    #n association with Operation Eyesight @niversal& =% has established a Comprehensive

    Eye Care @nit in Gambia at the @niversity Teaching -ospital in L!sa$a in partnership with

    the Gambian *inistry o" -ealth

    3onstruction o" uildin# "or +illa#e >ealth 3entre

    %hatlapen!marr! is a remote village in rishna district& Andhra +radesh To reach good

    medical treatment to the patients o" this village& =% has constr!cted

    ?r ?evineni S!bba Rao Arogyaendram& a "!ll,"ledged illage -ealth Centre named

    a"ter the "o!nder Chairman o" =%

    Pro-idin# >ealthy Drin'in# ater

    Access to clean and sa"e drin$ing water is essential to contain water borne diseases and

    their impact on comm!nities This is still a dream "or people living in some r!ral areas

    Responding to this basic need o" society& =% e(tended "inancial help "or installation o"

    ?rin$ing Hater +lant at > *edapad! village& in East >odavari district& Andhra +radesh

    %DU3ATI$N

    =%7s initiatives in this "ield aim at promoting ed!cation in bac$ward areas and enco!raging

    higher ed!cation

    Schemes implemented:

    %sta,lishin# and *ana#in# Schools near the 3o&!anys *anu"acturin# Units

    =% has been r!nning two "!ll,"ledged high schools B =ava %harat +!blic School and

    =ava %harat -igh School , at +aloncha in Telangana These schools& established by the

    company& cater to 133 st!dents coming "rom several nearby villages and have become the

    h!b o" secondary ed!cation in the region

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    The company is managing %rahmani +!blic School at haragprasad in Odisha Hith an

    inta$e o"

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    +aloncha and othag!dem =% donated a van to the school "or pic$ing !p

    anddropping its st!dents

    Arran#in# Tuitions to Poor Students

    To inc!lcate the habit o" st!dy and avoid school drop,o!ts among the children o" poor and

    illiterate parents belonging to bac$ward comm!nities in the local area at+aloncha& =%

    has arranged "ree t!itions to s!ch children and introd!ced rewards and gi"ts to those who

    "are well in their st!dies

    rant o" Scholarshi!s

    =% "o!nded ?r ? S!bba Rao Tr!st to s!pport ed!cation o" meritorio!s st!dents withlimited "inancial reso!rces The Tr!st has been sanctioning scholarships to needy and

    deserving st!dents "or p!rs!ing pro"essional co!rses Abo!t 3 st!dents have so "ar

    received these scholarships

    LI+%LI>$$D

    =% aims at lending a helping hand to people by providing means o" livelihood and

    empowerment thro!gh entreprene!rial development

    Sche&es i&!le&ented

    Sustaina,le Li-elihood o" Poor o&en throu#h %ntre!reneurial De-elo!&ent

    =% embar$ed on this pro0ect in Odisha in association with =ariChetana*ahila #nstit!te

    .=A*#/& an =>O engaged in vario!s social development activities with special emphasis

    on women The pro0ect was started in *arch

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    The company donated sewing machines and comp!ters to %hadrachalam Agency "or R!ral

    ?evelopment Rehabilitation and Ed!cational Society "or -andicapped .%RES-/& an =>O

    r!nning a school at %hadrachalam& Andhra +radesh& imparting special ed!cation and

    vocational training to disabled and spastic children coming "rom nearby hamlets

    +ocational Trainin#

    A large n!mber o" yo!th in the society are constrained by inade'!ate s$ills leading to

    irreg!lar employment J !nemployment while there is an increasing demand "or s$illed and

    talented manpower "rom the ind!stries This opens !p the need to provide '!ality training

    to talented yo!th to improve their s$ills

    To cater to the above need& =% has set !p =ava %harat ocational #nstit!te at +aloncha

    which is presently providing vocational training in Helding trade +lans are !nder way to

    introd!ce training in other trades li$e Electrician& Fitter and *ason at this instit!te