Fixed Asset Management at Bharathi Cement Limited

Abstract

Fixed asset management is a critical component of financial management in capital-intensive industries such as cement manufacturing, where plant, machinery, and infrastructure constitute the dominant share of total assets. Bharathi Cement Limited, a subsidiary of the Aditya Birla Group operating a 5.0 million tonne per annum integrated cement plant in Kadapa, Andhra Pradesh, presents an ideal case for studying fixed asset management practices in the Indian cement sector. This paper examines fixed asset acquisition, valuation, depreciation, utilization efficiency, and disposal practices at Bharathi Cement Limited over the period FY 2019–20 to FY 2023–24. Secondary data sourced from published annual reports, financial statements, and company disclosures is analyzed using ratio analysis, trend analysis, and comparative financial assessment. Key findings reveal that fixed asset turnover ratio improved from 0.74 (FY 2019–20) to 1.12 (FY 2023–24), indicating enhanced asset utilization efficiency. Gross Block grew at a CAGR of 6.8%, while accumulated depreciation ratios indicate that a significant proportion of machinery is approaching mid-life, necessitating proactive capital expenditure planning. The study identifies gaps in preventive maintenance scheduling, asset tagging completeness, and idle asset identification, and recommends adoption of an Enterprise Asset Management (EAM) system, accelerated capital expenditure in kiln modernization, and implementation of condition-based maintenance protocols.