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

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Textile Exports Not So Viable

Textile Exports Not So Viable Hansavivek MAFATLAL INDUSTRIES' dimethyl- aniline project, being set up at Dewas in MP, is nearing completion and is expected to be commissioned by the end of September next. Meanwhile, the company is seeking government permission to establish some other large projects there. Research work is also in progress on developing the process for monoethylaniline, diethy- laniline, intermediates for acrylic dyes and for new types of disperse dyes. Machinery and equipment continue to be modernised too The company last far spent on this account Rs 1.71 crores in the textiles division and Rs 77 lakhs in the chemicals division. It has maintained dividend on enhanced capita] at 17.6 per cent from reduced earnings. On a turnover of Rs 46.87 crores against Rs 41.20 crores, it earned a gross profit of Rs 5.21 crores against Rs 5.20 crores previously. Net profit was lower at Rs 2.37 crores (Rs 2.63 crores) but still covered the increased distribution 1.75 times. The directors have indicated their intention to pro- pose payment of dividend at "not less than 16 per cent" on the capital to be expanded by the bonus issue. Bonus shares will rank for full dividend from the current year. The textile division's working was hampered by escalation in the cost of production, unsatisfactory demand, and shortage of power. The company incurred a loss of Rs 68 lakhs in fulfilling its controlled cloth obligation. Exports of the textiles division declined from Rs 3.28 crores to Rs 2.72 crores, but exports of the chemicals division rose from Rs 40 lakhs to Rs 65 lakhs. Production of the main items of the chemicals division was not affected in spite of shortage of power as the company has its own generating set, but difficulty in availability of sodium chlorate affected production of methyl violet.

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