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

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Area of Merry Expansion

Area of Merry Expansion Hansavivek GARWARE NYLONS has secured 'letters of intent' to further step up capacity to 3,840 tonnes of nylon yarn per annum and also to produce annually 360 tonnes of polyester filament yarn. The company is seeking a licence for import of capital goods and has, in the meanwhile, initiated steps to implement expansion expeditiously. The programme, already in hand for raising capacity of nylon yarn to 2,000 tonnes per annum, was delayed because of shortage of steel and other materials as also the Indo-Pakistan war. It is, however, almost completed now. Trial production of the polymerisation plant is expected to commence in October or November this year. The plant is also designed to manufacture annually 330 tonnes of nylon chips suitable for the plastics industry. The company has approached government for the necessary endorsement on its industrial licence. The cost estimate of the present expansion programme has gone up to Rs 680 lakhs mainly due to the revaluation of the Deutsche Mark, the introduction of octroi, the increase in customs duty on the imported equipment, and the modifications made in the buildings, in utility services and in certain indigenous equipment to take care of further expansion envisaged for the plant. ICICI has sanctioned additional loan equivalent to US $221,000, and the escalation in the rupee requirements is being met partly from internal resources and partly from the funds made available under IDBI's rediscounting scheme. GNL's accounts for the year ended March 1972 showed higher sales and profits, though profitability as measured by ratio of gross profit to sales was lower compared to the preceding year- Dividend, maintained at 11 per cent, was covered 4.92 times. The new shares allotted under the public issue will participate in the dividend distribution from the current year. The company spent Rs 50,000 for advertisements in the brochures of a political party.

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