Gains of Development and Diversification

Gains of Development and Diversification Hansavivek GENERAL ELECTRIC COMPANY OF INDIA (GEC) is expanding its business. It has obtained an industrial licence for manufacture of DC Citcuit breakers and expects to receive shortly a licence for air pollution control equipment. The company has also applied for permission to manufacture transformers upto 400 kV. It also expects shortly the decision of RBI regarding its 'carry-on-business' licence under PER A. The company has turned out good working results for 1980-81 despite a long strike at Naini works and higher interest costs. On sales up fiun Rs 38.86 crore to Rs 47.77 crore, it lias earned a gross profit of Rs 5.41 crore against Rs 4.08 crore in the previous year. These figures show a fair increase in margins. Net profit is Rs 2.01 crore (Rs 1.53 crore) and covers equity distribution, raised by two points to 15 per cent, 1.86 times as against 1.63 times previously. Growth in sales and profits reflects benefits which are now accruing to the company as a result of development work put into the company's products and diversification into new ones. The programme of development and diversification continues to attract the resources and attention necessary to ensure further growth and prosperity. All the divisions contributed to increase in sales. The perfoim- ance of the transformer and switchgear divisions was badly affected by the strike at Naini, but nevertheless showed improvement over the previous year which had also suffered from a closure. Production of flameproof switchgear, 'transwitch' units and vacuum switchgear panels, has now been established. Also good progress has been made in the introduction of new technology products such as vacuum circuit breakers and vacuum contractors, which already form a valuable addition to the switchgear activities. The motor and pump division increased its penetration into the industrial market. Flameproof squirrel cage motors arc now being manufactured and production of HT motors has been increased. The development of flameproof slipring motors s now at the final pre-production stage. The air control division is expanding its range of products and has entered into a collaboration agreement with Keller Lufttechnik for manufacture of air pollution control equipment. The furnace division has now overcome the teething problems in the manufacture of new range of induction heating equipment and has been helped by the improvement in the electric arc welting business.