Growing Conglomerate

Growing Conglomerate Hansavivek MODI SPINNING AND WEAVING which is already engaged in diverse businesses such as manufacture of yam, cloth, thread, ice, liquors and spirits and even cotton ginning and oil crush- ing, is now also taking up manufacture of synthetic sewing thread. It has secured a letter of intent for an annual capacity of .300 tonnes and has entered into a technical collaboration agreement with Arova Rorschach of Switzerland. Meanwhile, last sear it spent Rs 140 lakhs on additions to plant and machinery, electric installations, buildings, etc. The capacity of the synthetic section of the yarn mills has been doubled and a new cone-dyeing section for synthetic cone yarn established. The expansion programme of the thread mills has been completed, and 18 looms have been purchased to replace the old ones at the silk mills. More looms are intended to be replaced to enable the mills to manufacture heavy suitings. Although production was restricted by a 25 per cent power-cut imposed in November and later increased to 40 per cent, the year to April last proved highly profitable to the company. Sales were only marginally better, but gross profit jumped by a crore to Rs 2.44 crores, even after providing Rs 46 lakhs for retirement gratuity. Dividend is maintained at 12 per cent. Besides, the board has recommended issue of bonus shares on a two-for-five basis. The provision for bonus, however, was actually Rs 3 lakhs lower than in the previous year. The number of employees receiving emoluments of Rs 2,000 or more per mensem rose from 32 to 45 over the year.