Articles by Hansavivek

Sound Base for Major Expansion Hansavivek TATA CHEMICALS' application for setting up gas-based nitrogenous fertiliser complex at Babrala, in UP, has been cleared at all levels and is awaiting formal approval of Cabinet Committee of Economic Affairs, D S Seth, Chairman, expects that a letter of intent will be received soon. This project is to be implemented by a new company 'Tata Fertilisers', which is a wholly-owned subsidiary. Government has, for time being, deferred decision on company's application for a phosphatic fertiliser complex in Okhamandat for production and supply of balanced plant nutrients as a part of a strongly farmer-oriented package of inputs and services. Management is anguine that, at an appropriate time, government will accord approval to this proposal too. Meanwhile, the company has produced good results in year ended March 1984 with record production, sales and profits. Shareholders have also been rewarded with a record dividend of 25 per cent, besides a two-for-five bonus issue of equity shares. Also, employees' earnings increased by about 10 per cent. Gross profit more than doubled from previous 9-month figure of Rs 15.51 crore to Rs 31.97 crore following increase in sales from Rs 65.91 crore to Rs 106.25 crore, reflecting a notable widening of profit margins. With both depreciation and taxation claiming much more, gap narrowed and net profit came to Rs 9.21 crore (Rs 8.23). Dividend stepped up from 19 per cent to 25 per cent on enlarged capital was covered 3.14 times as against 4.16 times previously.

R and D-Based Expansion Hansavivek ATUL PRODUCTS has developed processes for manufacture of two herbicides, Isoproturon and Metoxuron, and has applied for a manufacturing licence for these. It has also applied for a licence for Isocyanates, an important group of chemicals to be made for first time in India, Meanwhile, the company has secured a licence to step up capacity of dicalcium phosphate from 1,500 tonnes to 4,000 tonnes per annum. First stage of expansion to 2,500 tonnes is expected to be commissioned this year. Company is awaiting registration for Tetradifon, a pest ide, for which it already holds a letter of intent. Government has not approved its application for an industrial licence for DAP. Company has represented to goverrtment for reconsideration in view of substantial increase in demand for this product. Company continues to pursue R and D activities. Hydrogenation pilot plant costing Rs 35 lakh, based on such efforts, was commissioned last year. Processes for several dyes intermediates and pesticides have been developed The Week's Companies in laboratory, some of which will be scaled up for manufacture. A plant for removal of mercury from caustic soda plant effluent costing about Rs 17 lakh, also based on a process developed in laboratory, is being put up.

Threatened by Cost-Push Hansavivek TATA ENGINEERING AND LOCOMOTIVE COMPANY (TELCO) has suffered a setback in its working during the year ended March 1984. Although it produced more vehicles than in the previous year, it earned a lower gross profit of Rs 50.86 crore against Rs 52.08 crore. Sales were also marginally lower at Rs 755 crore against Rs 759 crore. These figures reflect a decline in margins. With a higher provision for depreciation due to change in income-tax rules (Rs 29.23 crore against Rs 21.87 crore) and a tax liability of Rs 2.35 crore after the absence of any tax liability for seven years, gap has widened appreciably. Net profit is over a third lower at Rs 19.28 crore (Rs 30.21 crore). Directors have maintained equity dividend of 20 per cent on an enlarged capital, but at cost of earnings cover which has declined from 3.67 times to 2,11 times.

Continued Diversification Hansavivek LARSEN AND TOUBRO continues to expand and diversify its activities. Its cement plant at Awarpur commenced trial production in October last and has achieved commercial production. Implementation of second phase of project is in progress and the project is scheduled to be commissioned by mid-1987. Company's cement has been very well received in market and is considered to be of a high quality. Steps are being taken to set up new manufacturing facilities at a cost of about Rs 31 crore at Hazira in Gujarat for production of equipment for nuclear power and heavy water projects. To finance these projects, company proposes to raise additional finance of Rs 70 crore

Many-Sided Expansion Hansavivek HINDUSTAN LEVER is going ahead with its new projects. Its 10.000-tonne synthetic detergent plant, at Chhindwara in MP. has already been commissioned. Detergent bar manufacturing facilities, at Jammu. are being expanded and engineering work there is in progress, Erection of soap and personal products manufacturing plant, in the Kandia F;ree Trade Zone, has been completed. A garment manufacturing unit has also been commissioned at Kandia, Work on a complex fertiliser project, at Haldia, is progressing satisfactorily and the plant is expected to be commissioned next year. A new fine chemicals unit, at Jammu. has been commissioned. Drug intermediate project is scheduled to be completed later this year. An export-oriented herbicides project is being set up at Kandia. in technical collaboration with Velsicol Chemical Corporation, USA. The plant is due to be commissioned this year. The company continues to devote a great deal of attention to R and D. While trials as to efficacy of Plant Growth.Nutrient (PGN) in increasing yields of paddy, vegetables, potatoes and other crops art1 continuing on 1,90,000 acres, production facilities are being set up at Jammu. Co-ordinated trials conducted by ICAR regional stations and agricultural universities support company's own research findings and ICAR has recommended issue of manu facturing licence by the appropriate ministries. Newer compounds were discovered which increase the photo-synthetic efficiency of plants. Investigation on production of propionic, butyric and lactic acids by fermentation from molasses, field trials on different biological fertilisers for groundnut, arhar. moong. urad and Bengal gram, and production of prawn frys at the Muthukadu farm near Madras, are all progressing satisfactorily. Several new fine chemicals, an efficient hydrogenation catalyst based on locally' developed special carrier, and development of a process for utilising by-product fluorine from STPP plant, are high points of research effort in chemicals. Most of teething ''difficulties in the operation of the sal upgrading plant at Taloja have been overcome:' A new de tergen (active based on renewable raw materials has been found to be acceptable. Novel efforts in biotechnology, such as plant tissue culture, recombinant DNA work to produce single cell oil. and use of monoclonal and hybridoma techniques to develop im- munodiagnostics. arc under way. Management hopes that some of these new, concepts, will bolster technology and blossom into new business, A total of 19 schemes, funded by the Hindustan Lever Research Foundation (9 on agriculture. 2 on animal husbandry and 8 on industrial chemicals), arc on stream. Another 10 schemes recommended by the Foundation (8 on agriculture and 2 on animal husbandry)