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

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Boom in Tractors with World Bank Help

Boom in Tractors with World Bank Help Hansavivek ESCORTS' 1975 results an: pleasing, with impressive growth in sales and profits. As power constraints disappeared, higher output was achieved, with reduced volume of inventory. Borrowings were also reduced. Despite the general recession in the engineering industry, sale of Escorts tractors was higher at 9,859 units as against 8,239 units in the previous year. Sale of piston assemblies was 5ft per cent higher, and of motor cycles and scooters up from 17,1:32 units to 24,476 units. Almost all the product lines showed higher sales, except automobile shock absorbers which suffered owing to the recession in the automobile industry. By far the most impressive advance was recorded by exports sales at Rs 17.97 crores from previous year's Rs 2.25 crores. Major contribution came from sales of tractors made under the World Bank scheme, accounting for Rs 13.45 crores. Other exports included implements and railway and automobile shock absorbers. The company also obtained an order for providing consultancy services for the PVC cables project. H V Nanda, chairman, says that the tractor division could hardly break even, as due price increase was not allowed, though costs were higher than in the previous year. From mid-January, prices of tractors have been decontrolled, except in case of Ford and Massey- Ferguson. The company increased prices of Escorts tractors after decontrol, but it claims that the ultimate price to customers is still Rs 3,000 to Rs 4.000 lower than of competitive brands. The enhanced price will give the tractor division a reasonable return and profitability. The company won, against global" competition, another order of 100 Ford tractors from Nepal

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