Articles by Hansavivek

Parent Company-Linked Expansion Hansavivek GENERAL ELECTRIC COMPANY OF INDIA is expanding its activities. It has concluded collaboration agreements with GEC Power Transformers, UK, for manufacture of 400 kv transformers and with Radyne, UK, for manufacture of medium frequency induction melting furnaces in the range 1

Getting Back from the Brink?
Hansavivek ALUMINIUM INDUSTRIES (ALIND) has shown a fresh net loss of Rs 7,87 crore in the year ended March 1985 as against Rs 6.43 crore in the previous year, although it could achieve a higher turnover of Rs 41.86 crore against Rs 29.70 crore. After some adjustments, the deficit carried forward has mounted up to Rs 14-69 crore to stand against share capital of Rs 3.54 crore and reserves of Rs 20 lakh. Dividends on preference as well as equity shares have been again skipped.

Making Power Pay Hansavivek TATA ELECTRIC COMPANIES are going ahead with their project of the second 500 MW unit for replacement of .the ageing unit nos 1, 2 and 3 and later no 4, which have been in active, continuous service for nearly three decades. The IBRD Joan agreement for US $ 135.4 million was signed in December last year and has become effective from July 31. The preliminary civil works for the project commenced from the beginning of this year and procurement of equipment for the 220 KV switchyard has been initiated. To ensure efficiency and reliability of supply and for transmitting power from this unit to South Bombay, the management has considered using 220 KV circuits with SF6 gas-insulated sub-stations at Carnac Receiving Station in South Bombay and a fibre optic communication system between Trombay and Carnac.

Fertiliser Project in the Bag Hansavivek TATA CHEMICALS, at long last, has received the letter of intent and MRTP clearance for the gas-based nitrogenous fertiliser project to be located at Babrala in Badaun district of UP. The fertiliser complex will be capable of producing 1,350 tonnes of ammonia per day which will be used for the manufacture of 2,250 tonnes per day of urea. The project will be implemented by Tata Fertilisers, which is at present a 100 per cent subsidiary of the company but which will be spun off as a widely held public company in due course. The company, either by itself or, if found necessary, together with its shareholders, associates and friends, will subscribe, on the basis of current estimates and subject to the final approvals of the government agencies concerned, Rs 75 crore to the equity share capital of Tata Fertiliser. The company has turned in good working results for the year ended March 1985. The production of soda ash increased marginally by 2.5 per cent to a new high of 4,71,352 tonnes, representing a capacity utilisation of 94 per cent despite numerous handicaps. Pro duction of densified soda ash increased by 22 per cent to 1,38,360 tonnes and placed the company in a better position to cater to the requirements of the glass industry and other users of densified soda ash. The production of refined sodium bicarbonate increased by 18 per cent to a new high of 21,669 tonnes. The production of salt during the year crossed, for the first time, the one-million tonne mark and at 10,23,288 tonnes, registered an increase of 36 per cent over the previous year. Correspondingly, production of bromine also increased by 52 per cent to 549 tonnes. Production of vacuum salt increased by 28 per cent to a new high of 90,118 tonnes, of which 15,100 tonnes were iodised. Production of caustic soda marginally declined by about 3 per cent and of pure salt by about 37 per cent due to sluggish demand. The benzene hexachloride plant was shut down for a month for complete overhaul and check-up to ensure maximum environmental safety. Production of BHC also declined by about 2 per cent. The company has reported a gross profit of Rs 33,09 crore against Rs 31.97 crore in the previous year following increase in sales from Rs 105.16 crore to Rs 111.51 crore. These figures show a small decline in margins. With reduced provision for depreciation and a substantial saving in taxation, net profit has more than doubled from Rs 9.21 crore to Rs 20.97 crore. Unchanged dividend of 25 per cent on enlarged capital is covered 6.01 times by earnings as against 3.14 times previously.

Modernisation Drive Hansavivek TATA IRON AND STEEL COMPANY (TISCO) has drawn up a five-year plan of capital expenditure of about Rs 1,000 crore, a major part of which will be devoted to new facilities to maintain and improve its steel- making capability. This will enable it to rectify, after many years of neglect due to paucity of funds, some major deficiencies in its plant, such as the absence of a raw material yard and handling facilities, an additional sinter plant, more power generation, etc With the addition of the bar and rod mill and certain modifications to the existing mills, the management hopes to maintain production for some years to come at the highest levels of plant utilisation. The company has initiated steps to implement the letter of intent for expanding its saleable steel capacity from 1.74 million tonnes to 2.10 million tonnes per annum. The Joint Plant Committee (JPC) has sanctioned a loan of Rs 80 crore to the company out of the Steel Development Fund for financing the rupee requirements of some major projects under taken by it. These projects include schemes for modernisation of the facilities at the medium and light structural mills, improvement in infrastructural facilities such as a waste recycling plant, improvement of town services, etc. The company also proposes to approach the J PC for financial assistance of about Rs 300 crore to undertake other capital projects. The company has entered into an agreement with Korf of West Germany to set up a new company, subject to government approval, for the import of steelmaking technology which eliminates the use of coking coal and substantially reduces the necessity for power. At present, the size of such a production unit it restricted to about 3 lakh tonnes per annum, but it is hoped that higher tonnages might be possible in the near future. This will be a revolution in steelmaking in India and the future growth of the steel industry can be assured on a more viable basis.