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

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A Poor Competitor

A Poor Competitor Hansavivek DHRANGADHRA CHEMICAL's work- king results , for 1976-77 have been dismal. It has shown a net loss of Rs 13 lakhs against a net profit of Rs 81 lakhs in the previous year. Dividend, even on preference shares, has been skipped. The directors blame a combination of adverse factors such as demand recession, restrictions on power consumption, power failures, and rise in costs. Production of caustic soda declined from 39,215 tonnes to 34,950 tonnes, and output of other products at the Sahupuram unit also declined. Periodic overhauling at Dhrangadhra of the turbine, and relining of the lime kiln, brought down production of soda ash from 57,600 tonnes to 49,892 tonnes. There was only slight increase in production of sodium bicarbonate and ammonium bicarbonate, and there was a small decline in production of calcium chloride. Export of upgraded ilmenite increased by about 2,700 tonnes and realisation on it was better than last year. Having executed all the pending orders, the management is negotiating for further export orders. The company exported small quantities of calcium chloride, soda bicarb, trichloroethylene, and caustic soda. The remaining works for completing the rehabilitation and expansion of soda ash unit has been virtually postponed at the instance of financial institutions. The furnaces in the calcination plant of the soda ash unit have been partially converted from oil to coal to effect economies. The bromine project will be taken up this year, if it is approved by the MRTP Commission and the financial institutions. Commenting on the outlook, the directors say that power cut has been withdrawn from July last and there is now no shortage of sweet water at Sahupuram unlike last year. With intensive sales efforts, stocks of finished products' in both the units have been brought down. At the Sahupuram unit, sale of caustic lye has been increased, yielding improved realisation. But costs of inputs, power, railway freight, etc, continue to rise, and there is no immediate possibility of significant improvement in sales realisation. The plant of the subsidiary, Plastic Resins and Chemicals, remained idle for most part of the year ended September 1976. Power cuts and high power rates as well us the increased cost of naphtha and fuel oil have made the working of this unit unrennmerative at the current selling prices. Representations, made to government and the financial institutions for various reliefs, are pending SOUTH INDIA SHIPPING has turned out good -results for the year ended March 1977, with higher freight earnings and gross profit. Net profit, however, is lower than last year because of the increased tax liability, but the maintained dividend of 20 per cent is still covered 1.4 times by net earnings. This performance looks all the more pleasing when viewed against the protracted slump in the shipping industry

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