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

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From Shortage to Surplus

From Shortage to Surplus Hansavivek ORIENT PAPER produced a lower quantity of 1,18,794 tonnes of paper and hoard in 1975-76 against 1,31,800 tonnes in the previous year owing to acute shortage of water in the summer months, resulting in the closure of both its units for considerable periods, go- slow at both units, and an "illegal'' strike by some employees at Brajrajnagar. The company had also to contend with sluggish demand for its products which led to heavy accumulation of stocks. The management complains that even the paper offered at concessional price against allotments made by government not lifted in time. The company had to reduce prices and allow extensive credit facilities to customers to clear up the unsold stocks. Costs, moreover, increased to eat into margins. Gross profit thus dropped by 45 per cent from the previous year's level following a 16 per cent decline in sales. Cover for the unchanged dividend of 20 per cent has come down from 5.5 times to 3.2 times. Of late, government has allowed export of printing and writing paper which may be in excess of the best production among the years 1973, 1974 and 1975. The company has received a letter of intent to expand the capacity of the Brajrajnagar unit from 76,000 tonnes to 91,000 tonnes of pulp and paper per annum. The company has requested the government of MP for additional supply of 25,000 tonnes of bamboos during the current season to maintain normal production. In the absence of supply of Salai wood by the stale government, the Amlai unit had to use increased quantity of mixed hardwoods last year which created some problems. As the supply of bamboos from the leased-out areas in Orissa is inadequate, the company has to meet its requirements from other sources at higher cost.

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