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

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Looking for New Pastures

Looking for New Pastures Hansavivek UNION CARBIDE INDIA, engaged in manufacture of diverse products such as batteries, arc carbons, industrial carbon electrodes photo-engravers' plates and strips for printing, stellite castings, hard facing and tube rods, electrolytic manganese dioxide, chemicals, polyethylene, pesticide formulations, MIC based pesticides and also in shrimp fishing, has now received a 'letter of intent' for manufacture of ready-to-wear garments at Calcutta, wholly meant for export. Meanwhile, the company has undertaken major expansion projects in the fields of MIC based pesticides and fishing. In compliance with the retirements of the Foreign Exchange Regulations Act the company has submitted certain proposals to government in regard to dilution of foreign equity. Of the total subscribed share capital of Rs 18.43 crores, 60 per cent is held by Union Carbide of USA, the holding company. During 1975, the company was able to maintain production at a satisfactory level in spite of power shortages and difficulties of obaining adequate working capital, except at the EMD plant at Thana, near Bombay, which remained locked out for over six months. Net sales were modestly better than in the previous year, but gross profit turned out to be about 22 per cent lower because costs rose in all directions, and ate into margins. Borrowings increased substantially and so did interest cost. Despite much reduced tax liability, net profit was considerably lower. Dividend, raised by a minute fraction, is covered 1.7 times against nearly 2.2 times last year. The company earned Rs 3.09 crores in foreign exchange, of which exports of shrimps accounted for Rs 1.26 crores, while it spent as much as Rs 16.93 crores by way of consumption of raw materials, spare parts and components, payment of technical service fees, interest and commission and dividend remittance.

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