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

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Grasim Industries, Sudarshan Chemical Industries, Electrosteel Castings

GRASIM INDUSTRIES Strategic Acquisition Grasim Industries, the flagship company of the Aditya Birla group, is engaged in the businesses of viscose staple fibre (VSF), cement, sponge iron, textiles and chemicals, with around 80 per cent of its revenues being contributed by the first two segments. During 2002-03, 46 per cent of total revenues were generated from its cement business, while 35 per cent revenues were contributed by VSF. However, almost half of its profits are accounted for by its VSF business. With total income of Rs 4,684 crore in 2002-03 up from Rs 4,358 crore in 2001-02, net profits increased to Rs 368 crore from Rs 303 crore. Performance has been marked by a drive towards proactive business and financial restructuring, making itself much leaner and stronger.

Ipca Laboratories, Gujarat State Fertilisers and Chemicals, CEAT

IPCA LABORATORIES Riding a Wave Ipca laboratories with its thrust on overseas markets has been making consistent improvements in its performance over the years. The company now exports its products to over 90 countries across the globe. From sales of Rs 160.7 crore in the overseas markets, exports now constitute

Bajaj Tempo, Chennai Petroleum Corporation, Tata Tea

BAJAJ TEMPO Eco-Friendly Drives Bajaj Tempo, after its turnaround during the financial year 2001-02, has recorded an impressive performance. With net sales increasing from Rs 519.9 crore a growth of over 34 per cent, net profit

Steel Authority of India, Thermax, United Phosphorus

STEEL AUTHORITY OF INDIA Turning Around Steel Authority of India (SAIL), the public sector steel behemoth, is on the verge of a turnaround backed by the upsurge in the steel sector. The company after incurring successive losses for the last five years, reported profits of Rs 242 crore in the last quarter of 2002-03. As a whole, losses of Rs 304 crore during 2002-03 was lower from that of Rs 1,707 crore incurred in 2001-02. It has continued to maintain its improved performance in the earlier quarter and announced a profit of Rs 255 crore in the first quarter of 2003-04. This performance has been made possible by the buoyancy in demand for steel, which has witnessed a growth in domestic finished steel consumption by 5.7 per cent in 2002-03. This coincided with a pick up in global demand for steel, firming up international prices, the impact of which was felt in about 20 per cent rise in the domestic market. The global demand for steel is estimated to have grown by 6 per cent in 2002-03, particularly fuelled by the huge consumption of steel in China. With buoyancy in both the domestic and the international demand, the steel business scenario looks upbeat.

Bajaj Auto, Indian Rayon and Industries, McDowell and Company

BAJAJ AUTO Speeding on New Wheels Bajaj Auto, with its traditional armoury of geared scooters lost the decade-old two-wheeler war to Hero Honda. The latter with its efficient and technologically superior motorcycles overtook Bajaj in 2001 and since then is the undisputed leader in the market. While the two-wheeler market has grown at a compound rate of 11.7 per cent between 1994 and 2003, motorcycle sales exploded at a phenomenon rate of 41 per cent per year. Consequently, from a market share of under 22 per cent in 1993-94, motorcycles now account for over 74 per cent of India

Tata Power Company, Goodlass Nerolac Paints and Godrej Industries

TATA POWER COMPANY Bright Opportunities Tata Power is gearing up to meet the new challenges and opportunities opening up with the passing of the electricity bill and grow in the national power arena. Tata Power Company (TPC) generates more than 90 per of its total revenues from the business of generation, transmission and distribution of electricity. Its operation in the licensed area of Mumbai alone contributes about 85 per cent of the power business revenues. The company also undertakes turnkey execution of transmission projects through its power systems division and the strategic electronic division designs and develops key systems and components primarily for the defence sector.

Larsen and Toubro, Century Textiles and Industries and Godfrey Phillips India

LARSEN AND TOUBRO Impetus to Exports Larsen and Toubro, the engineering and construction conglomerate, is making its mark on the international arena. Export revenue in 2002-03 were 17 per cent of net sales, up from 2 per cent four years ago and 15 per cent last year. Last year, the company has been able to corner prestigious international turnkey contracts including a gas processing and pipeline project in Tanzania and an offshore platform for petroleum in Qatar. Net sales for 2002-03 stood at Rs 9360 crore as against Rs 7726 crore in the previous year registering an increase of 21 per cent. Similarly, profits after tax were up from Rs 347 crore in 2001-02 to Rs 433 crore

Reliance Industries, Cummins India and GTL

RELIANCE INDUSTRIES Global Outlook Reliance Industries, with the amalgamation of Reliance Petroleum, has become an integrated company, having operations in oil and gas exploration and in production, refining and marketing of petrochemicals, power and textiles. It is now the largest private sector company in India. The financial performance of the company for the year ending March 2003 shows an increase in sales to Rs 50,096 crore from Rs 40,404 crore in 2001-02, with a growth of 10 per cent. Profit before tax showed a likewise increase of 12 per cent from Rs 3,243 crore to Rs 4,104 crore. The company acquired Indian Petrochemicals Corporation (IPCL), the second largest petrochemical company in the country, through the government disinvestment programme. The company is now the 11th largest producer of polymer in the world. Integration of IPCL with the parent company has allowed optimal use of manufacturing resources to produce different products and optimisation of marketing infrastructure. Expansion of polyethylene (PE) production capacity has taken place to about one million tonnes per annum, followed by diversification of its PE product portfolio covering a wide range of enduse applications. This has led to setting up of the polymer pipe business in Hazira. It launched the

Hero Honda Motors, Century Enka and Atul

HERO HONDA MOTORS Speeding Along The domestic two-wheeler market has been vibrant in recent years. Competition among manufacturers of two-wheelers has intensified and they are vying with each other to win customers with a variety of models. The new motor-cycles are not only technologically superior, but also aesthetically designed with product launches accompanied by heavy discounts. Keeping pace with these developments, Hero Honda Motors too launched a slew of products. First, Dawn, a four-stroke 100 cc motorcycle targeting the basic/entry segment and the CD Dawn has been launched. The target consumers are the first time motorcycle buyers and those who want to upgrade from scooters and mopeds to motorcycles. Ambition, a 133cc model, is targeted towards the upwardly mobile customers belonging to the executive segment. It combines fuel efficiency and power and has a couple of variants. Lastly, the launch of the premium 223cc sports motorcycle called Karizma, demonstrates the technological prowess of the company. These new models are being well accepted in the market. Besides, Splendor continues to be the largest selling two-wheeler model in the country. During 2002-03, it registered a growth of 26 per cent in total sales, against an industry growth for two-wheelers at around 17-18 per cent. It today has over three million customers. And along with Passion, the middle segment model, it comprises the key growth segment for the company.

The Associated Cement Companies, Bharat Forge, and Raymond

THE ASSOCIATED CEMENT COMPANIES Buoyant Outlook The Associated Cement Companies has not been able to reap fully the benefits of rising demand for cement from the expanding infrastructure and housing development in the country. Net profit of the company in 2002-03 declined by 20 per cent and stood at Rs 103.89 crore. This decline in profit was arrested by the divestments proceeds of its non-core businesses. The entire equity of 35 per cent in International Ferrites and 19 per cent equity in Bridgestone ACC India were divested during the year, which released an amount closed to Rs 90 crore.

Nicholas Piramal India, The Ahmedabad Electricity Company, Finolex Industries

NICHOLAS PIRAMAL INDIA Building on Research Nicholas Piramal India with its strong emphasis on the domestic pharmaceutical market, achieved sales growth of 20 per cent in 2002-03, against a domestic industry growth rate of 8-9 per cent. With total sales of Rs 1,136 crore, net profit was more than doubled to Rs 118 crore. With 21 new products being launched during the year, the number of new products over the last two years rises to 35. The company has also reduced its interest costs by repaying a portion of its debt and substituting the rest with low cost debt. Net interest outgo came down by 34 per cent to Rs 20.58 crore.

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