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

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Export-Linked Expansion

Export-Linked Expansion Hansavivek SANDVIK ASIA is going ahead with its programmes of substantial expansion and modernisation. It has received capital goods licences and has placed orders for the supply of imported machinery. Some of the machines for the expansion programme have already been received. The expansion is to he financed by an issue of rights shares to Indian shareholders for 25 per cent of the cost of expansion. The issue will be at a premium, and an application has been made in this regard to the Controller of Capital Issues. The remaining cost of the expansion will be met by borrowings and internal accruals. Total cost of expansion is estimated at Rs 1.65 crores. The company has undertaken to export 60 per cent of the additional production upon expansion. The company expects to receive this year an imported gama coating unit for the modernisation programme. It has entered into a technical collaboration agreement with Sandvik AB of Sweden on terms and conditions approved by Government of India, RBI, however, has declined permission to the company to continue to act as agent of the Swedish company for sale of products manufactured in its steel and coromant divisions in Sweden. The company proposes to reappoint Atlas Copco (India) for five more years, on expiry of the present agreement on September 4, 1977, to act as sole selling agent for the sale of tungsten carbide, integral drill steels, extension equipment, drilling bits, and the like, imported or manufactured in India.

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