ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Accent on R and D

Accent on R and D Hansavivek MAHINDRA UGINE STEEL COMPANY (MUSCO) has shown poor results for 1984 85 due, the company claims, mainly to an "illegal strike" by workmen at the plant from February 28 to April 27, 1985 resulting in production loss of about 14,000 tonnes. The company produced 63,266 tonnes of in- gots and 46,722 tonnes of finished alloy and special steels compared to 97,868 tonnes and 75,482 tonnes, respectively, in the preceding 18 months of 1983-84, Pro-rata output for 12 months of 1983-84 works out to 65,245 tonnes of ingots and 50,321 tonnes of finished alloy and special steels. As it is, the company's safes amounted to Rs 50.35 crore against Rs 83.21 crore in the previous 18 months and gross profit came to Rs 271 lakh against a trading toss of Rs 89 lakh. After depreciation, there was a lower fresh net loss of Rs 112 lakh against Rs 593 lakh.

From Textiles to Electronics

From Textiles to Electronics Hansavivek JAGATJIT COTTON TEXTILE MILLS (JCT) is diversifying into manufacture of polyester staple fibre and colour picture tubes through joint sector companies, in both of which it is participating in the equity capital to the extent of 24 per cent. The polyester project is being implemented in association with Punjab Polyfibres, which has recently received a letter of intent increasing the capacity from 15,000 tonnes to 30,000 tonnes per annum. The project is expected to go on stream by the end of 1987. The directors feel that with the recent substantial reduction in excise duty, the polyester fibre industry will experience a large growth in demand. JCT has entered into a collaboration agreement with Punjab State Industrial Development Corporation for setting up a colour picture tubes project in Punjab for which a letter of intent was issued to Punjab Display Devices, a wholly- owned subsidiary of PSIDC in 1982. The project envisages production of five lakh colour picture tubes per annum. Negotiations are in an advanced stage with Hitachi of Japan. The company currently manufactures picture tubes for black and white TV receivers. Efforts are being made to improve the profitability of the unit by increasing the level of production from the present one lakh to six lakh picture tubes per annum. The directors say in their report that within the limits that might be set by the authorities they would make every possible effort to secure for the shareholders and fixed deposit holders of the company a preferred position to participate in the equity capital of both these projects.

A Piece of the Automobile Boom

A Piece of the Automobile Boom Hansavivek BHARAT GEARS is expanding and diversifying its activities. The Central government has approved its agreement with Zahnrad- fabrik Friedrichshafen (ZF) of West Germany for technical-cum-financial collaboration for manufacture of light commercial vehicles, trucks and buses. Under the terms of the agreement, ZF will hold 11 per cent of equity share capital in the Indian company and will have a director on its board. The company will be the first independent manufacturer of automotive gear boxes in India to produce light-weight sychromesh gearboxes of the latest designs. The company will soon come to the market to raise funds for the Rs 10 crore project which is already under implementation. Raunaq Automotive Components, jointly promoted by the company and PICUP to implement the project for the manufacture of 1,000 tonnes per annum automotive gears and 10 million numbers thin walled bi-metal bearings (also known as engine bearings) in the joint sector in UP has applied for financial assistance of Rs 6 crore including Rs 1.45 crore in foreign currency to IFCI. Construction of the factory building is to start soon.

Silver Lining in Shipping

Silver Lining in Shipping Hansavivek GREAT EASTERN SHIPPING COMPANY has shown improved performance during 1984-85 and has returned to the dividend list, after an absence of two years, with a 7 per cent distribution. Although operating earnings marginally lower at Rs 65.88 crore against Rs 66.49 crore in the previous year, gross profit increased from Rs 8.38 crore to Rs 15.16 crore. After providing for depreciation, there was a net profit of Rs 190 lakh against a net loss of Rs 428 lakh. The pro- posed dividend is just covered by net earnings. What is more significant is that the company was able to generate adequate cash to make all repayments of instalments due on its loans and also pay a modest dividend. Commenting on the future outlook the directors observe that although the international shipping scene has been very weak some long-term improvements are now beginning to take place. Both banks and shipowners are taking a realistic view of the future and have stopped needless expansion. The result is increased rate of scrapping and yards have very few new orders on hand.

Accent on Productivity

Accent on Productivity Hansavivek WEST COAST PAPER MILLS produced 75,082 tonnes of paper and board during the 30th year ended June 1985 as against 64,812 tonnes in the previous year, utilising 125 per cent of the rated capacity against 108 per cent previously. This was achieved despite severe handicaps of inadequate supplies of raw materials, poor quality of coal and continuous power shortage. The company won the productivity award for 1984 for the third time in succession.

Gainful Nursing

Gainful Nursing Hansavivek SHREE SYNTHETICS proposes to amalgamate Bengal Paper Mill Company (BPM), a sick unit with an installed capacity of 45,000 tonnes per annum and lying closed for some time past, with it. A rehabilitation- cum-modernisation scheme involving a capital expenditure of Rs 14 crore is under consideration of financial institutions and banks. On its revival, BPM expects to get certain financial concessions and monetary benefits from the Central and state governments and banks. Meanwhile, Shree Synthetics will be required to contribute 20 per cent to the cost of the unit's scheme of revival and will also have to provide guarantees to the financial institutions and banks for their financial assistance to BPM. The company expects to get benefits of carried forward losses of BPM aggregating about Rs 11.5 crore under Section 72 A of Income- tax Act.

Time to be Optimistic

Time to be Optimistic Hansavivek GLAXO LABORATORIES has commenced production of Ibuprofen and Sotalal at its new bulk drug factory at Ankleshwar in Gujarat. The company has received letters of intent for the manufacture there of Griseofulvin, an antifungal antibiotic, and Cephalexin, a cephalosprin. It has also sought approval of the government for manufacture of Ranitidin, an advanced ami- ulcerant which was discovered by Glaxo, UK. Know-how for all these three products will be provided free of cost by the UK firm. In response to company's representations made in the past years, government has endorsed higher licensed capacities for three of the food products manufactured at Aligarh, but its application for permission for flexibility to produce other forms of milk foods there is stilt pending.

Accelerated Growth and Diversification

Accelerated Growth and Diversification Hansavivek RALLIS INDIA has fared so well during the year ended May 1985 that it has more than doubled the equity dividend and the distribution has a thicker earnings cover than last year's. Turnover has amounted to Rs 175.26 crore against Rs 118.12 crore of the preceding nine month-period and gross profit has almost trebled to Rs 6.44 crore from Rs 2.17 crore. Although tax liability has taken away much more and depreciation also claimed a higher provision, net profit has increased from Rs 89 lakh to Rs 295 lakh. The recommended dividend of 22.5 per cent is covered 2.36 times against 1.43 times previously. On completion of the legal formalities for the amalgamation of Protein Products of India with the company with effect from September 1,1983, those shareholders of PPI, who opt for the company's shares in lieu of their holding in PPI, will also be entitled to the interim as well as final dividend for 1984-85. The Agrochemicals division launched'a new product, Fenvalerate, which is a synthetic pyrethroid based on technology deve- The Week's Companies loped by the company's Rand D Centre. The product has been well accepted by the Indian farmers and is recognised 'as a premium quality product in the market. The Engineering division registered increased sales of fans. It has also developed its third party distribution arrangements by extending support for design and quality control. Improved lighter weight double insulated tools were introduced in the market. Manufacturing units of the Pharmaceuticals division are being modernised to update technology and manufacturing procedures.

High Yield Fertiliser

November 30, 1985 official concerned to pay damages. On April 23, 1982, for instance, Justice Mars- Jones awarded

Assured Growth

Assured Growth Hansavivek ITC is looking forward to the future with a measure of optimism. The substantial investments made and continuing to be made in existing businesses to modernise equipment and to induct new technology are already yielding good results. Plans for applying available surpluses to new ventures are in the process of being finalised, says Chairman J N Sapru.

Hinged on Public Investment

Hinged on Public Investment Hansavivek NATIONAL INSULATED CABLE COMPANY OF INDIA (NICCO) has turned in satisfactory working results for the year ended April 1985 in spite of the continued recessionary conditions in the wire and cable industry with increased pressure on margins as a result of rise in cost of inputs. Sales amounted to Rs 23.94 crore against Rs 21.45 crore in the previous year and gross profit increased from Rs 104 lakh to Rs 110 lakh. With depreciation claiming more, however, net profit has turned out to be lower at Rs 55 lakh (Rs 63 lakh). The unchanged dividend of 12.5 per cent is covered 2,08 times as against Rs 2.52 times previously. The company opted for rationalisation of product mix whereby there has been reduction in production quantities in certain areas. Products yielding reasonable margins only were produced, while production of others was either shelved or reduced. The expansion and modernisation programme, undertaken last year, was completed and has started yielding results.

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