R and D Based Growth

R and D Based Growth Hansavivek HINDUSTAN LEVER is setting its sights higher. It has submitted applications to the government for approval of investments in several projects in chemicals, petrochemicals, export-oriented ventures, etc Meanwhile, its fertiliser complex project at Haldia in West Bengal has reached an advanced stage of erection. The drug intermediate project at Jammu has already been commissioned. The export-oriented herbicides project at Kandla was commissioned in June 1984 and the company exported 528 tonnes of the product during the year. The company has turned in good results for 1984 which was the first year when the full impact of transfer of domestic businesses of edible fats, dairy and AFS to Lipton India, pursuant to the scheme of reorganisation, influenced business operations. The company's turnover amounted to Rs 539 crore against Rs 501 crore in the previous year, even though Rs 66.60 crore relating to the transferred businesses was excluded. The increase of turnover from the rest of the businesses more than made up for the shortfall attributable to the transfer red businesses. Gross profit was only a shade lower at Rs 54.85 crore against Rs 55.98 crore. With reduced provisions for depreciation and taxation, however, net profit increased from Rs 18.56 crore to Rs 21.68 crore. The total dividend of 24 per cent is covered 1.93 times by earnings as against 1.77 times previously. The company continued its thrust in exports, and export turnover, including that of subsidiary, reached a new high of Rs 74 crore. The new 100 per cent export-oriented ventures in the KFTZ for the manufacture of herbicides and garments registered export orders valued at over Rs 13 crore in the very first year of commercial production. The company also made fresh inroads in the North African markets by exporting detergent powder and packaged tea, and consolidated its position in Europe and Japan for exports of value-added sal fat. Prices of non-edible soap making oils increased abnormally during the year.