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

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Decks Cleared for Rapid Growth

Decks Cleared for Rapid Growth Hansavivek VOLTAS is embarking on programmes for further accelerating growth. It has secured government's approval for manufacture of truck-mounted hydraulic cranes based on a technical collaboration with Harnischfeger Corporation of USA, whose P and H brand name has earned world-wide recognition. These cranes are used for highway as well as rough terrain. The company has submitted proposals to the government for manufacture of earthmoving equipment, not at present manufactured in the country. It is also examining the viability of manufacturing refrigerators in a plant to be established in a backward' area of Maharashtra. An application has been made to government for enhancing the licensed capacity, as the number hitherto permitted to be produced at the Thane plant constituted an uneconomic scale of production. The management hopes that this application will be sanctioned in the current year. During 1980-81, the third year in succession, Voltas has turned out impressive working results. Gross profit has expanded from Rs 5.15 crore to Rs 9.76 crore following a turnover of Rs 260.04 crore against Rs 228.20 crore in the previous year. Profit margins have increased noticeably. Tax liability has risen steeply, as the reliefs arising from amalgamation in 1978-79 of two sick companies have been fully availed of. Even so, net profit is better at Rs 4.10 crore (Rs 3.65 crore). The directors have recommended a two- point rise in dividend at 20 per cent, which is payable on the capital enlarged by issue of bonus shares on a one-for- four basis (allotted in August 1981). The enhanced distribution is covered 2.61 times against 3.23 times previously. A planned programme for the progressive renewal and replacement of ageing plant and equipment at Thane and other manufacturing locations has been drawn up and will be implemented in a phased manner over the next three years. The company offered secured convertible bonds of Rs 5 crore in May 1981

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