ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846
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Production Suffers but Dividend Unchanged

Production Suffers but Dividend Unchanged Hansavivek DUNLOP INDIA has secured a letter of intent' for manufacture of steel cord and textile reinforced conveyor belting and fan and vee belts at a new factory in Goa, but its proposal to expand capacity at the Ambattur factory by two lakh tyres and tubes with the addition of balancing equipment is still under government's consideration. The expansion programme for 2.5 lakh automotive tyres and tubes at Ambattur was completed during 1971, but total tyre production in 1972 was lower than in the previous year owing to heavy production losses at the Ambattur factory on account of go-slows and strikes, culminating on two occasions in the declaration of lock-outs. As a result, a total of 84 working days were lost during 1972 and another 23 days during the current year. The company's offices in Calcutta had to remain closed too for more than 45 days owing to unrest created by "an unrecognised splinter union, in its bid to obtain recognition". Total production of automotive tyres was 15,68,000 against 17,23,000 last year, and the installed capacity of 18,00,000. Automotive tubes production was 15,49,000 against last year's production of 15,88,000 and installed capacity of 17,00,000, Although domestic sales of non-tyre products, such as conveyor and transmission bolting, hoses, and fan and vee belts, increased by 18 per cent, the company's total net sales were slightly lower than in the previous year. Gross profit dropped by 42 per cent, owing to increases in costs. Despite substantially lower provision for taxation on account of the reduced profits, together with increased capital allowances on the expansion projects completed during the year, net profit was more than halved. A good part of the unchanged dividend of 20 per cent will come from the past reserves.

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