Into New Fields

Into New Fields Hansavivek BARODA RAYON CORPORATION is diversifying into new fields and also expanding its existing activities. It expects to receive soon a Letter of intent' for annual manufacture of 10,000 tonnes of synthetic detergents. This will pave the way for its entry into soaps and cleansing agents. The company has completed modernisation of the nylon plant for increasing capacity to 2,436 tonnes per annum. The installation of plant and machinery for the nylon tyre cord project is in full swing and the plant is expected to be commissioned in the last quarter of this year. Meanwhile, the company's applications for expansion of nylon filament yarn to 5,000 tonnes per annum and of nylon tyre cord to 4,000 tonnes per annum are under consideration of the Central government. The capacity of the sulphuric acid plant is being stepped up from 14,000 tonnes to 21,600 tonnes per annum. Orders for indigenous equipment and machinery have been placed. Steps are also under way to increase conversion capacity of nylon tyre into nylon fabric and this is expected to be achieved next year. The company has applied for expansion of production capacity of poly ester filament yarn to 2,100 tonnes per annum. An agreement has been signed with the collaborator, Italviscosa Eastern Trading of Italy, for supplying technical knowhow for the caprolactum recovery plant which is expected to be commissioned during the next year. The directors envisage "encouraging" prospects for the current year in view of the expected higher production of nylon and polyester filament yarn. The management is launching on the second phase of modernisation of all divisions to keep abreast of the changing technology and processes, The company's working results during 1980 were adversely affected by an "illegal" strike by workmen for 19 days in February 1980, coupled with steep rise in cost of production. Sales amounted to Rs 31.89 crore against Rs 29.87 crore in the previous year and gross profit declined from Rs 7.87 crore to Rs 5.03 crore. Net profit is 1.71 crore (Rs 2.70 crore). Total distribution raised by two points to 15 per cent is slightly short-earned, whereas last year's payment was covered 2.46 times by earnings.