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

Unfair Competition from Small Industry

'Unfair Competition' from Small Industry Hansavivek COLOVR-CHEM has experienced contraction of margins despite a higher turnover due to steep escalation in costs and under-utilisation of capacity. Sales have increased from previous year's Rs 36.42 crore to Rs 40.83 crore and gross profit has looked up marginally from Rs 6.47 crore to Rs 6.86 crore. Net profit is a shade lower at Rs 2.09 crore (Rs 2.12 crore). The directors have recommended a silver jibilee dividend of 3 per cent in addition to the normal distribution of 12 per cent. This is covered 1.45 times against 1.53 times previously. Turnover during the first four months of the current year has been less by about 5 per cent than during the corresponding period of the previous year, but what is more disturbing is that the company is faced with a further erosion in its already declining profit margins due to fresh increases in prices of pertoleum products, electric power, raw materials, etc.

Subscribers please login to access full text of the article.

New 3 Month Subscription
to Digital Archives at

826for India

$50for overseas users

Get instant access to the complete EPW archives

Subscribe now

Comments

(-) Hide

EPW looks forward to your comments. Please note that comments are moderated as per our comments policy. They may take some time to appear. A comment, if suitable, may be selected for publication in the Letters pages of EPW.

Back to Top