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

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Setting the Pace in Aluminium

Setting the Pace in Aluminium HINDALCO INDUSTRIES, one of the largest manufacturers of aluminium in the country, achieved a production of 1*39.762 tonnes of primary metal and 36,414 tonnes of rolled and extrusion products during the year ended March 31,1991. The company expanded its installed capacity for aluminium metal from 1.35 lakh tonnes to 1.50 lakh tonnes during the year. An application was made to the government to grant an increase in licensed capacity by 1.5 lakh tonnes to take the total licensed capacity to 3 lakh tonnes. The techno-economic considerations for putting up a 1.5 lakh tonne per annum capacity smelter were examined and found acceptable. Work on the installation of another cold rolling mill is under way. The company continues to import new technologies and absorb them. For instance, the 'seed washing system' for the alumina plant was imported and absorbed in 1989-90. The company is currently implementing the absorption programme of the imported technology for modernisa tion of finishing facilities in the rolling mills.

Demand Constraint to the Fore

Demand Constraint to the Fore BATA INDIA'S domestic business during the year ended December 31, 1990 was seriously affected by the disturbed law and order situation in different parts of the country, especially in Punjab, Jammu and Kashmir and the north-eastern states. The directors are anxious about the decline in the disposable income of the middle class which forms the backbone of the company's business in the wake of inflation which worked out to be over 12 per cent per annum. The problem was compounded by the sharp increase in the cost of almost all raw materials and in operating expenses. Because of the fear of a further decline in sales Volumes, the cost increases were not passed on to the consumers.

World Class in Tyre Technology

World Class in Tyre Technology Kumaran Pola MRF, the Madras-based tyre industry giant, has closed the latest accounting year on September 30, 1990 and brought out the results for a six-month period. With the accent on diversification, the company is pursuing new projects to take it in newer directions. The chairman and managing director, K M Mammen Mappillai, finds the company on the threshold of becoming a major trading house even by world standards.

Upgrading Technology and Reducing Costs

Upgrading Technology and Reducing Costs Kumaran Pola SANDVIK ASIA reported impressive improvement in operations and profitability for the year ended December 1990. The production of tungsten carbide products increased to 54.96 lakh, equivalent to 1062 legs, from 49.58 lakh, equivalent to 1012 kgs, in the preceding year. The main raw materials and bought-out components consumed during the year were 104 tonnes of tungsten ore as against 136 tonnes in the preceding year, 11 tonnes of cobalt including cathodes as against 10 tonnes in 1989 and 18 tonnes of carbide powders as against 15 tonnes in 1989. These figures reflected the results of the measures taken by the company to improve the cost effectiveness in the manufacturing and process rationalisation areas. The imported raw materials and components formed 76 per cent of the cost of raw materials and components consumed during the year as The Week's Companies compared to 77 per cent in 1989. The company manufactures and markets cemented carbide cutting tools, wear parts and rock tools and mineral tools. The tungsten carbide products manufactured by the company include integral rock drill steels, bits, detachable bits, extension drill steel equipment, inserts, tips, dies, nibs, studs and other applications. Sandvik Asia is today the largest supplier of cemented carbide cutting tools which are marketed under the brand name 'Coro- manf. It offers the most comprehensive range of sophisticated rock drilling and coal mining tools.

Higher Profit Despite Lower Sales

Higher Profit Despite Lower Sales Kumaran Pola COROMANDEL FERTILISERS' net sales were nominally down during the year ended September 30, 1990 to Rs 177.64 crore from Rs 193.63 crore during the preceding year. However, there was significant improvement in profitability as a result of various steps taken to raise efficiency in the fertiliser division and reduce losses in the cement division. The company achieved the doubling of operating profits to Rs 30.77 crore. The net loss of Rs 6.96 crore during 1988-89 was converted into a net profit of Rs 10.50 crore during the latest year.

Reduced Profit Margin

liberates lost souls. That "claim, it will be immediately said, is an unpardonable ex' aggeration. Could there actually be any liberation for lost souls, would not they gravitate toward other lost souls alone? Or would they not contaminate the hitherto innocent ones, rendering them into apparitions without the least hope of redemption. Greene, will you not please agree, shades off into Dostoyevsky.

Higher Profit through Cost Reduction

Higher Profit through Cost Reduction Kumaran Pola COASTAL PAPERS achieved a 55 per cent growth in net sales on annualised basis to Rs 16.41 crore during the year ended March 31, 1991. As shown by a lower expenses to sales ratio of 0.88:1 in 1989-90 compared to 0.94:1 in the preceding year, the company was able to achieve a drastic reduction in the cost of operations. Therefore, it could increase its operating profits by 144 per cent to Rs 2.39 crore and net profits by 321 per cent to Rs 1.60 crore. The company produced 15,059 tonnes of paper during the year as against 18,282 tonnes during the 18-month preceding period.

Improved Profitability

Improved Profitability Kumaran Pola HYDERABAD INDUSTRIES' sales showed a 16 per cent increase on annualis- ed basis during the year ended March 31, 1990 to Rs 107.54 crore. Through tight control on costs, the company managed to bring down the expenses to sales ratio Raw materials cost showed a 20 per cent

In the Wrong Place

In the Wrong Place Kumaran Pola RAASI CEMENT had yet another year of losses during the 15-month period ended March 31, 1990. This was despite the fact that production and sales increased by 47 per cent and 56 per cent respectively. The company produced 10.81 lakh tonnes of cement showing an average production of 0.72 lakh tonnes per month during the period compared to 8.86 lakh tonnes or 0.49 lakh tonnes per month during the 18-month preceding period. Net sales of the company showed a growth of 56 per cent on annualised basis from Rs 65.31 crore to Rs 84.92 crore. This involved a sale of 10.83 lakh tonnes of cement during 1989-90 as against 8.54 lakh tonnes during the preceding period.

Piece of Shipping Cake

Piece of Shipping Cake Kumaran Pola ESSAR SHIPPING increased its main income from charter hire and freight by 47 per cent on annualised basis during the year ended March 31, 1990. Due to the increase in the number of ship days, judicious deployment of ships, tight control over expenses and also profit on sale of two ships, the company could achieve substantial improvement in performance during the year. There was increase in operating expenses such as employees' cost by 35 per cent and depreciation by 40 per cent on annualised basis mainly due to increase in number of ships and due to a larger number of voyages over the preceding year. Despite such spurts in expenses, the company could substantially reduce the expenses to sales (main income) 1989-90. This provided the explanation for

Beginning of a Turn-Around

Beginning of a Turn-Around? Kumaran Pola HINDUSTAN MOTORS achieved a 36 per cent growth in net sales to Rs 565.01 crore during the year ended March 31, 1990. The other income earned by the company declined from Rs 13.18 crore to Rs 7.89 crore. Although there were increases in certain categories of expenses, the company was able to bring down the expenses to sales ratio from 0.97:1 in the explanation for the 39 per cent increase

Hurt by Power Shortage

Hurt by Power Shortage Kumaran Pola FERRO ALLOYS CORPORATION'S net sale at Rs 213.97 crore during the year ended March 31, 1990 showed a nominal increase of 2 per cent on annualised basis over the preceding nine-month period. While the operating profits on annualised basis did not show any change, the net profits of the company showed a decline by 2 per cent. The expenses-to-sales ratio remained steady at 0.92:1 in both the years. The employees' cost spurted by 26 per cent on annualised basis due to the substantial increase in the salaries and other benefits consequent upon the settlement arrived at with the workers' union. According to the directors, the power supply in Andhra Pradesh was considerably lower during the year which adversely affected the production of various alloys in the ferro alloys division. Production was down by more than 26 per cent during the year In addition to power cuts which was almost 60 per cent during the first quarter of 1990, there were increases in the power tariff. The Orissa State Electricity Board revised the tariff twice during the year. Electricity is consumed by power- intensive ferro alloys industry as a raw material and electricity charges constitute a major item of the cost of production. The company has been representing to the authorities to secure power at reasonable prices. The cost of major raw materials like chrome ore and low ash metallurgical coke also went up by about 40 per cent during the year.

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